Jakarta’s Evolution Plan: From Capital to Agglomeration Hub in Ambitious Restructuring Plan

Monas Monument, DKI Jakarta

The imminent development of the Nusantara Capital City (IKN), envisioned as the future national capital, is poised to redefine Jakarta’s standing. Rather than abandoning the city, the government plans to transform it into a special administrative province within an expansive agglomeration.

Outlined in the draft Special Capital Region of Jakarta Province Bill, unanimously agreed upon by legislative council members, the proposed bill defines an agglomeration area as an urban expanse in spatial planning that unifies the management of multiple city and district areas with their parent city, irrespective of administrative differences.

Envisioned as a global-scale hub for national economic growth, the agglomeration area is designed to integrate governance, industry, trade, comprehensive transportation, and other strategic elements to bolster the national economy and enhance overall well-being.

According to Article 51, paragraph 2 of the draft bill, the agglomeration area encompasses, at a minimum, the Jakarta Special Administrative Region, Bogor Regency, Tangerang Regency, Bekasi Regency, Cianjur Regency, Bogor City, Depok City, Tangerang City, South Tangerang City, and Bekasi City.

“Synchronization of development is achieved through aligning spatial planning documents and planning documents of ministries/agencies, provincial development, and regency/city within the Agglomeration Area,” as per the draft bill on Wednesday (6/12/2023).

To establish this agglomeration area, a Master Plan for Agglomeration Area Development is formulated, referencing the National Long-Term Development Plan, National Medium-Term Development Plan, and central government strategic policies, including Jakarta’s role as a Global City.

This master plan for agglomeration area development includes at least transportation; waste management; environmental management; flood mitigation; drinking water management; hazardous and toxic waste management; regional infrastructure; spatial planning; energy; health; and population.

To support the master plan’s program implementation and activities in the Agglomeration Area, the central government can provide budgetary support to the Jakarta Special Administrative Region, considering fiscal capacity in accordance with laws and regulations, as stipulated in Article 54.

To coordinate the implementation of national strategic spatial planning in the Agglomeration Area and development planning documents, an Agglomeration Area Council will also be formed.

The Agglomeration Area Council is tasked with coordinating the implementation of national strategic spatial planning in the Agglomeration Area and the Master Plan for Agglomeration Area Development; and coordinating, monitoring, and evaluating the implementation of programs and activities in the master plan by ministries/agencies and local governments.

“The Agglomeration Area Council is led by the Vice President. Further provisions regarding the Area Council are regulated by Presidential Regulation,” as quoted from Article 55 of the draft Jakarta Special Administrative Region Bill.

In addition to establishing the Area Council, the bill opens the possibility of forming a joint service agency by local governments in the Agglomeration Area. This agency is granted the right to have its wealth; manage its budget; manage its employees; and collaborate with other parties.

The revenue sources of the joint service agency consist of the regional budget; its own revenue; and other legitimate income. The establishment of this agency is determined by a joint decision of the regional heads after obtaining the approval of the Regional People’s Representative Council.

The joint service agency is led by the Head of the Agency, assisted by the Deputy Head of the Agency. There is also a supervisory board tasked with approving the agency’s policies and budget and overseeing the agency’s operations and finances.

The Head of the Agency, Deputy Head of the Agency, and the supervisory board are elected by the regional heads and determined by a joint decision of the regional heads in the Jakarta Agglomeration Area, Bogor, Depok, Tangerang, Bekasi, and Cianjur.