As Indonesia’s bustling economic hub and governmental center, Jakarta is a beacon of modern civilization and a pioneering smart city. However, according to the 2023 Global City Index, Jakarta is ranked 74th out of 156 cities worldwide, trailing behind regional counterparts such as Manila and Bangkok.
Shirley Santoso, the President Director and Partner at Kearney Indonesia, pointed out a concerning trend: “Jakarta (in Global City Index) has dropped two spots over the past eight years. The most significant declines are in Human Resources (HR) and cultural experiences. Business activity has slightly decreased.
But this index is not static, meaning other cities are investing to improve their rankings,” she explained during the Mitra Praja Utama Regional Cooperation Forum on Friday (16/5/2024).
Santoso highlighted a stark comparison between Jakarta and other global cities. While China boasts over 16 cities in the Global City Index, Bangkok, the capital of Thailand, ranks 45th, and Kuala Lumpur holds the 72nd position. Conversely, some ASEAN cities rank lower than Jakarta, with Ho Chi Minh City at 94 and Manila at 70.
Shirley urged the Indonesian government to invest strategically to enhance Jakarta’s position in the Global City Index. She elaborated on the key indicators essential for improving a city’s ranking: business activity, human resources, information exchange, cultural experiences, and political engagement.
Kearney, which has compiled the Global City Index since 2006, bases its rankings on five major dimensions. “First, business activity: how many companies are in that city?” Shirley detailed.
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The second dimension is Human Resources, evaluating education levels and the presence of internationally recognized schools.
The third is the ease of information exchange, such as digital broadband availability.
The fourth is the cultural dimension, which includes the number of museums and the vibrancy of the culinary scene.
Lastly, political engagement, including freedom of speech and the presence of international consulates, is crucial for a city’s progress.
The vision for Jakarta as a global city and smart city is a long-term endeavor. The Jakarta Provincial Government (Pemprov DKI Jakarta) has set a development vision: “Jakarta Special Capital Region as the National Economic Center and Global City, serving as a trade center, service and financial services center, and national and global business activities center.”
Various research institutions, including The Globalization and World Cities Research Network (GaWC) and Cities in Motion Index, provide frameworks for assessing global city indicators. Despite Jakarta’s mid-range position in these indexes, it remains a national benchmark for advanced cities. However, significant efforts are needed to address ongoing issues and elevate Jakarta to a top-tier global city status.
