As Indonesia gears up to relocate its capital city, Jakarta is poised to retain its status as the nation’s economic hub.

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Indonesia’s parliament made a significant decision on Thursday by granting special status to Jakarta, solidifying its position as the nation’s economic center even as plans proceed to relocate the capital city to Borneo island.

The ambitious plan to shift the capital away from Jakarta, plagued by congestion and sinking land, is a monumental endeavor aimed at establishing Nusantara, a $32-billion city currently under construction in the jungles of East Kalimantan on Borneo.

This visionary project spearheaded by outgoing President Joko Widodo is driven by the noble objective of redistributing wealth and development across Indonesia’s vast archipelago, moving it away from the Java-centric concentration that has long prevailed.

With the enactment of a new law, an “agglomeration” council is set to be established to facilitate cohesive development strategies between Jakarta and its surrounding satellite cities, thereby ensuring a harmonious transition.

Minister of Home Affairs Tito Karnavian emphasized the importance of enhancing Jakarta’s competitiveness even after it ceases to function as the capital. He stressed the need for Jakarta to evolve into a world-class city capable of sustaining robust economic growth and contributing significantly to the country’s GDP.

While Jakarta will continue to serve as Indonesia’s capital until an official decree is issued by the president designating Nusantara as the new capital, preparations are well underway for the transition.

It is anticipated that the grand ceremony commemorating Indonesia’s independence day on August 17, 2024, will mark a symbolic milestone in Nusantara, signaling the gradual shift of administrative functions.

Moreover, plans are in motion for thousands of civil servants to relocate to Nusantara by the end of this year, marking a pivotal moment in Indonesia’s history as it embarks on a transformative journey toward a more equitable and sustainable future.

The decision to confer special status upon Jakarta underscores the recognition of its enduring significance as a vital economic powerhouse, ensuring that it continues to thrive and contribute to Indonesia’s prosperity long after its role as the political capital has been relinquished.

This strategic move also reflects Indonesia’s commitment to fostering balanced development and equitable growth across the nation, ushering in a new era of progress and prosperity for all its citizens.

As Jakarta undergoes this pivotal transition, it is poised to emerge as a dynamic metropolis, leveraging its unique strengths and resources to propel Indonesia forward on the global stage.

In the years to come, Jakarta’s transformation will serve as a testament to Indonesia’s resilience, adaptability, and unwavering determination to build a brighter future for generations to come.

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