To become a global city, Jakarta must meet world-class economic parameters

Jakarta has had global city status since contemporary economic globalization in the 1970s as a link with the world economy.

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Aerial photo of the metropolitan landscape of Jakarta, on Saturday (20/1/2024). Jakarta will transform into a global city after the country's capital moves to the Ibu Kota Nusantara region in East Kalimantan.

Jakarta must meet the parameters of a well-established and globally connected economy. These parameters include research and innovation capacity, tourism and culture attracting tourist visits, a clean and comfortable environment, and adequate access so that it remains visible to assessors of the world's big cities.

The above requirement was expressed by the Acting Governor of Jakarta, Heru Budi Hartono, during a consultation on the planning of the Regional Government's Work Plan for 2025 and the Long-Term Development Plan for the DKI Jakarta Region for 2025-2045, on Tuesday (23/4/2024).

Jakarta must meet these parameters as the country's capital moves to the archipelago, East Kalimantan. Post-national capital, Jakarta will become the center of the national economy and global city.

The provisions are contained in the Jakarta Special Region Law which was approved at the 14th DPR Plenary Meeting for Session Period IV Session Year 2023-2024, Thursday (28/3/2024). In the draft law, the national economic center is the national economic and business center on a global scale that supports sustainable national economic development.

Also read: No longer the capital city, Jakarta is still attractive to investors

The term global city refers to a city that hosts international activities in the fields of trade, investment, business, tourism, culture, education, health, as well as being the location of headquarters for national, regional, and international companies and institutions, and the center for production of strategic international products, thus creating significant economic value for Jakarta and its surrounding areas.

"Since the era of contemporary economic globalization began in the 1970s, Jakarta's status has actually become a global city. "At least as a gateway Indonesia, namely connecting Indonesia with the global economy," said Head of the Urban-Rural Dynamics Research Group, Population Research Center of the National Research and Innovation Agency (BRIN) Galuh Syahbana Indraprahasta, Wednesday (24/4/2024 ).

KOMPAS/FAKHRI FADLURROHMAN

Travelers participating in the free homecoming program are looking for their buses in the Monas area of Jakarta on Thursday (4/4/2024). Monas is one of Jakarta's icons.

The term "global city" has been present in academic discourse since 1990. Its definition is a city that serves as an important center in organizing the global economy. Examples of global cities include New York, London, and Tokyo.

Galuh stated that in the last 10-15 years, the term "global city" has become a marketing tool promoted by international consulting agencies and some city leaders. The criteria vary, but generally focus on the global service sector (finance, management, and law), becoming a location for the headquarters of many transnational companies, and supported by global connecting infrastructure, such as international airports and ports.

"In the context of Jakarta, globalization will not disappear even if the capital status moves. We just have to think about the effects of economic globalization on the internal areas of Jakarta and its surroundings," said Galuh.

The benefits for Jakarta include the provision of quality employment opportunities, a more environmentally friendly or low-carbon approach that is fair for all groups, the improvement of human resources quality, and better infrastructure.

Also read: The existence of Jakarta after it was no longer the capital city

On the other hand, the excess for the surrounding areas (Bogor, Depok, Tangerang, Bekasi and Cianjur or the agglomeration Jabodetabekjur area) is a strengthening (commitment) of cooperation because of the opportunity to shift Jakarta's function to an agglomeration. One of them is that universities and foreign representative offices move to BSD City, South Tangerang, or maintain protected areas in the upstream, central and coastal areas using grant funding mechanisms or similar.

ADRYAN YOGA PARAMADWYA

The Commuterline electric rail train (KRL) arrived at Tanah Abang Station, Jakarta, Tuesday (16/5/2023).

Agglomeration area

In the draft of the Special Jakarta Region Law, the agglomerated areas are functionally interconnected, linked by an integrated regional infrastructure system, although different from the administrative aspect as one center of national and global economic growth.

This agglomeration area is a separate section, Section IX Agglomeration Area, in the aforementioned law. Its existence is for synchronizing the development of Jakarta with the surrounding regions.

This synchronization includes spatial planning documents and development planning of ministries/agencies, provinces, and districts/cities within the scope of the agglomeration area. The program and activities must include at least transportation, waste management, environmental management, flood mitigation, drinking water management, hazardous and toxic material management including its waste, regional infrastructure, spatial arrangement, and energy.

Next, the agglomeration area council was appointed by the president to coordinate the management of spatial planning for national strategic areas in the agglomeration region and draft development plans, as well as monitor and evaluate programs and activities by ministries/institutions or local governments.

Also read: Jakarta Residents Want to Take Part in Determining the Fate of Their City

In addition, Article 57 allows cooperation in establishing joint service agencies for cross-regional services or cross-regional impacts in agglomeration areas. This service agency is a legal entity that has the right to own its own assets, manage its own budget and employees, and collaborate with other parties.

Its formation is determined by a joint decision of regional heads after approval from the Regional People's Representative Council (DPRD). Its funding sources come from the Regional Budget (APBD), its own revenue, and other valid income.

The joint service agency will be led by the head and deputy head of the agency. The proportion of votes for regional heads in the election of the head and deputy head of the agency will be determined based on the proportion of capital or shares of each region.

They are supported by the supervisory board. Their duties include approving policies and budgets of the service body, overseeing its operations and finances. The supervisory board is assisted by an internal supervisory unit.

Stronger efforts are needed so that this agglomeration area remains economically vital, but addresses issues of concern

KOMPAS/AGUS SUSANTO

Aerial photo shows the water flow of Kali Ciliwung rising at the border of Tebet, South Jakarta and Jatinegara, East Jakarta, on Sunday (5/11/2023).

Not only these two institutions, Article 59 regulates Jakarta in mandatory inter-regional cooperation with surrounding areas to improve the management of urban and border areas. This cooperation is aimed at integrating development between regions and sectors.

The scope includes minimum planning, management, and control of urban infrastructure networks (drainage, wastewater, and waste disposal), integrated and mass transportation systems, water resources, integrated flood and tidal flood control, air and water pollution control, as well as joint activities to support urban service needs.

All obligatory cooperation must be coordinated by the DKJ manager together with the minister who technically oversees related affairs. Cooperation is also accompanied by synchronization of planning and budgeting between regions in order to carry out mandatory cooperation that is the responsibility of each region.

According to Galuh, agglomeration has become a common phenomenon in Indonesia. The issue of concern, in fact, is the implications of uncontrolled urbanization on the decline of environmental quality, social-economic segregation, and fragmentation of public services.

"Stronger efforts are needed to keep this agglomeration area vital economically while addressing the issues of concern," said Galuh.

There are a number of notes from him for agglomeration area councils, shared services bodies and mandatory cooperation. The new institution requires a commitment to execution by all regional governments, does not increase vertical friction between central and regional governments, adheres to the spirit of decentralization and democratization for checks and balances, as well as innovation in urban governance and services.

Also read: Jakarta Special Region Law Ignores Ecological Recovery

The central government should take a wiser role by allocating a larger budget for strategic/priority programs, supporting the sustainability of agglomerations, and reaching an agreement regarding which areas/sectors should be prioritized in the first, second, and subsequent five-year periods.

It is also necessary to understand the distribution of functions of each region, decision-making must involve close collaboration between the central and local governments to accommodate various perspectives. The central government also plays a role in maintaining the commitment of all parties to what has been agreed upon.

KOMPAS/FAKHRI FADLURROHMAN

Silhouettes of workers walking in the Dukuh Atas area, Jakarta, Tuesday (23/4/2024).

Human Resources

During the development planning meeting on Tuesday, Heru stated that the transfer of authority through the Jakarta Special Region Law refers to the global city index and regional spatial planning.

Changes will be implemented in short, medium, and long-term planning documents. Implementation faces challenges such as limited budget availability, a shift in the paradigm of activities to meet international standards, and the creation of new urban economic activities in order to realize a competitive global city.

Heru stated that Jakarta also needs superior, productive, and prosperous human resources to face challenges. These human resources are meant to realize stability and resilience in the global arena.

"Equitable development, quality infrastructure, and environmentally friendly initiatives must be supported by exceptional, productive, and prosperous human resources. Consequently, by 2045, Jakarta will be able to compete with other global cities," said Heru.