Sustainability Of Economic Machines Becomes A Challenge For Jakarta After The Capital

Photo: Doc. FMB9

After being ratified by the DPR RI, the Jakarta Special Region Law (UU DKJ) will mandate the development of an agglomeration area as Jakarta's support for the global economy city. However, the development of economic machines is a challenge for Jakarta in realizing this mission.

Trisakti University City Administration Observer Yayat Supriyatna said building a strong agglomeration area requires more than just physical infrastructure. One of the crucial components, namely having strong data and facts as a basis for sustainable economic development.

"Jakarta, as the center of economic growth in Indonesia, must build its economic engine sustainability in order to be able to face future challenges," Yayat said in the FMB9 dialogue with the theme of the DKJ Law: Jakarta's Future after the capital, Monday, April 22.

In the context of Jakarta's development, it is important to treat cities and their surrounding areas as a complete unit, not just as separate entities. This is necessary to create an ecosystem of the region and economy that support each other.

"Without cooperation between Jakarta and its surrounding cities, it will be difficult to achieve sustainable economic growth," he said.

Yayat also added that it is important for Jakarta to know the challenges in preparing its economic engine. According to Yayat, cities that fail to make preparations will experience fragility in the carrying capacity of its economic growth.

One of the big issues that must be faced is to determine the direction of Jakarta's economic development. What exactly do we want to build with Jakarta's economy? What strength can make Jakarta appear on the world stage?" he asked.

Although Jakarta does not have natural resources such as tin and nickel or palm oil as money producers, Jakarta has strength in the form of space' and potentially large human resources. However, Gross Regional Domestic Product Data (GDP) from 2021-2023 shows that Jakarta still relies heavily on retail trading sectors and transportation services, especially on car and motorcycle sales and repair.

In addition, Yayat continued, based on the data he has, Jakarta's main strength lies in the company's financial services, insurance, and activities sectors. This is more interesting because this makes Jakarta not dependent on the surrounding cities in these sectors.

Yayat sees that the mission is not without challenges. According to him, there are concerns that the large trade sector that monopolizes the retail sector can hinder inclusive economic growth.

"There are two large corporates that dominate retail villages in Jakarta, so that it can cause economic inequality among its residents," he explained.

Another challenge is congestion which has become an acute disease for decades. This congestion problem must also be a serious concern that will not be resolved by simply changing Jakarta's status.

"There needs to be a comprehensive and collaborative solution between Jakarta and its surrounding cities to overcome this challenge," he explained.

Therefore, Yayat underlined that building an agglomeration area requires a strong commitment from all relevant parties, both the government, the private sector, and the community as a whole.

"By optimally utilizing the potential and strengths of Jakarta and its surrounding cities, DKJ and Agglomeration Areas can later become urban areas that are not only economically resilient but also sustainable and inclusive for all residents," he hoped.