Jakarta officially the Special Capital Region of Jakarta is the current capital and largest city of Indonesia. Located on the northwest coast of the world’s most populous island, Java, it is the center of economics, culture, and politics of Indonesia, with a population of 10,075,310 as of 2014. Jakarta metropolitan area has an area of 6,392 square kilometers, which is known as Jabodetabek (an acronym of Jakarta, Bogor, Depok, Tangerang, and Bekasi). It is the world’s second-largest urban agglomeration (after Tokyo) with a population of 30,214,303 as of 2010. Jakarta is predicted to reach 35.6 million people by 2030 to become the world’s biggest megacity. Jakarta’s business opportunities, as well as its potential to offer a higher standard of living, attract migrants from across the Indonesian archipelago, combining many communities and cultures.
Established in the 4th century as Sunda Kelapa, the city became an important trading port for the Sunda Kingdom. It was the de facto capital of the Dutch East Indies when it was known as Batavia. Jakarta is officially a province with special capital region status but is commonly referred to as a city. The Jakarta provincial government consists of five administrative cities and one administrative regency. Jakarta is nicknamed the Big Durian, the thorny strongly-odored fruit native to the region, as the city is seen as the Indonesian equivalent of New York (Big Apple).
Jakarta is an alpha world city and is the seat of the ASEAN secretariat, making it an important city for international diplomacy. Important financial institutions such as the Bank of Indonesia, Indonesia Stock Exchange, and corporate headquarters of numerous Indonesian companies and multinational corporations are located in the city. As of 2017, the city is home to six Forbes Global 2000, two Fortune 500, and four Unicorn companies. In 2017, the city’s GRP PPP was estimated at US$483.4 billion. Jakarta has grown more rapidly than Kuala Lumpur, Bangkok, and Beijing.
Jakarta’s major challenges include rapid urban growth, ecological breakdown, gridlock traffic and congestion, and flooding. In addition, Jakarta is sinking up to 17 cm (6.7 inches) per year, which, coupled with the rising of sea levels, has made the city more prone to flooding, and also one of the fastest-sinking capitals in the world. Indonesian President, Joko Widodo, has announced a move of Indonesia’s capital, possibly to Kalimantan, the Indonesian portion of the island of Borneo.