Jakarta Needs IDR 600 Trillion To Become A Global City After The Capital Move

UNSPLASH/Rifki Kurniawan ILLUSTRATION

JAKARTA - The DKI Jakarta Provincial Government has calculated the costs needed in Jakarta to increase development into a global city after the move of the capital city to Nusantara, East Kalimantan.

DKI Jakarta Regional Secretary Joko Agus Setyono revealed that Jakarta needs a budget of up to Rp600 trillion to be able to compete with other global cities in the world.

This was revealed by Joko in the socialization of Law Number 2 of 2024 concerning the Provincial Government of the Special Region of Jakarta (DKJ).

"There are several things that we think that Jakarta is required to become a global city, of course it requires a fairly large budget. The DKI Jakarta Regional Development Planning Agency has calculated or calculated that our real need to be equal to other global cities in the world requires a budget of around Rp600 trillion," said Joko at the Aryaduta Hotel, Central Jakarta, Tuesday, July 9.

Joko explained that the DKI Jakarta regional revenue and expenditure budget (APBD) is around IDR 80 trillion to IDR 84 trillion every year. Meanwhile, the budget posture has been divided.

Some of these employee spending reached 34 percent, spending on social assistance was almost 30 percent, and capital expenditures were around 19 percent of the total APBD. If you rely on the APBD, the need for development in Jakarta as a world-class global city will take a long time.

"The gap between the needs between the budget of Rp600 trillion we support and the current capital expenditure budget of only about 19 percent is still far from what we have to prepare," said Joko.

Therefore, Joko said that the DKI Provincial Government continues to coordinate with the DKI Jakarta DPRD as the legislature to increase regional income in order to accelerate development.

"The DKI Jakarta Provincial Government, which always synergizes with the DKI JKT DPRD, is trying to make budget efficiency in every sector so that the dream of becoming a global city can be realized," he explained.

After no longer being the capital city, Jakarta has a strategic function and role as a national economy and as a global city that is the center of business networks between Indonesia and other cities in the world. This is in accordance with Law Number 2 of 2024 concerning the Province of the Special Region of Jakarta.

Through the DKJ Law, it is hoped that Jakarta will not only contribute significantly to the national economy and state revenues as well as support the welfare of the people of Jakarta and national welfare, but also grow and develop as the main megapolitan city at the national, regional and global levels.

But even though it has been ratified, until now Jakarta's status has not changed and remains true until a presidential decision is issued regarding the relocation of the state capital from DKI Jakarta to IKN in East Kalimantan, based on Article 63 of the DKJ Law.