Jakarta’s Property Sector Will Not Be Affected by Capital Move


The government’s plan to move the capital city to East Kalimantan is predicted not to affect the property business sector in Jakarta. The DKI Jakarta area and its surrounding satellite cities are still the choice of investors to invest their capital.

This was conveyed by the Chairman of the DPD REI DKI Jakarta, Arvin Fibrianto Iskandar. He explained that investors still choose to invest in the property industry in Jakarta.

“I think at this time Jakarta is still an option for investment, even though there is a plan to move the capital city, but [the process of moving the capital city] is still quite long. Jakarta is still the best choice for investment,” explained Arin on the sidelines of the ceremonial giving of compensation and iftar with representatives of the Orphans and Dhuafa in Jakarta, Thursday (21/04/2022).

Although Jakarta will no longer be the nation’s capital city in the future, Arvin continued, that economic and business activities will still be concentrated in Jakarta.

He took the example of the United States, “For example in a big country like the United States, the capital city is Washington DC, but the city is not the main choice for investment, so, when the capital city is moved, Jakarta will remain the investor’s choice for doing business.”

The reason why Jakarta will still become a business center is that the ease of access and the availability of infrastructure are still a magnet for investors to invest there so that the demand for property to support business activities will continue to increase.

Arvin explained, “Easy access and adequate infrastructure make investors still look to Jakarta. They need property to support their business activities, so property demand will continue to increase even if the capital city is moved.”

For now, according to Arvin, the decline in the property business in Jakarta is not due to the news of moving to the capital, but because of the Covid-19 pandemic.

Despite declining sales due to the pandemic, Arvin noted that property sales and investment growth in Jabodetabek showed a positive trend although it had not yet matched the level before the Covid-19 pandemic.

“Until now, property sales in the Jabodetabek area have not matched sales before the Covid-19 pandemic. However, when compared to the previous two years, the increase is quite good, namely 20 percent – 30 percent, “said Arvin.