Losing Capital Title, Jakarta Proposed to Become Special Economic Region

TheIndonesia.co - As the Indonesian government continues the work to move the capital to Nusantara in East Kalimantan, politician has suggested former capital Jakarta to become a special economic region.

After House of Representatives passed the new capital city law last week, Jakarta has lost its status as special capital region. Member of Regional Representative Council (DPD) from Jakarta Jimly Asshiddiqie said status of the former capital city can be changed into special economic region, as opposed to regular province.

“Jakarta [should be] turned to special economic region, or DKE. Therefore, there will be special capital region Nusantara in Kalimantan and special economic region in Jakarta," he said on Sunday, January 23, as reported by Suara.com.

He also suggested that national economic authorities, such as the central bank, the Financial Services Authority (OJK), and the Deposit Insurance Agency (LPS) to remain centralized in Jakarta.

“If Bank Indonesia and OJK is relocated, then banking central will also move to Kalimantan. It won’t be the right move as Jakarta is the center of economy,” the politician said.

Instead, according to him, executive branch (including offices of President and Vice President, ministries, and state agencies) and legislative branch (including the House of Representatives, DPD, and the People’s Consultative Assembly) should be relocated to Kalimantan.

Judicial institutions, on the other hand, are suggested to remain in Jakarta to maintain independency and prevent intervention.

Lastly, Asshiddiqie emphasized that necessary regulations must be completed before capital relocation takes place.

Indonesia is moving ahead with the grand plan to move its capital from Jakarta to North Penajam Paser and Kutai Kartanegara regencies in East Kalimantan province. And last week, the Indonesian government announced that the name of the new capital is Nusantara.

Development continues to take place as first round of relocation is expected to start in 2024.