Jakarta's Economy Driven by Tertiary Sector, with Motor Vehicle and Car Repair Businesses Leading the Way

As of April 25, 2024, Jakarta's economy is primarily supported by the tertiary sector, with motor vehicle and car repair businesses being the largest contributors. The Indonesian government is accelerating its shift to the digital economy by focusing on empowering small and medium enterprises (SMEs) and tech startups.

The government is strengthening comprehensive research and development, technological innovation, and digitalization to create an advanced and high value-added business ecosystem. Digitalization has become a priority, including a focus on empowering SMEs and tech startups, as well as stronger cybersecurity.

Why this matters: Jakarta's economic shift and focus on the digital economy have far-reaching implications for Indonesia's overall economic growth and competitiveness. The success of SMEs and tech startups in Jakarta could serve as a model for other regions in the country, driving innovation and job creation.

The government is also working to build financial inclusion through partnerships to provide better access to financial services, and is refining regulations, policies, and governance to ensure a healthy and fair digital economy with consumer protection and national security measures.

Jakarta has been a global city since the 1970s, serving as a link to the world economy. As the national capital moves to East Kalimantan, Jakarta must meet the parameters of a well-established and globally connected economy, including research and innovation capacity, tourism and culture, a clean and comfortable environment, and adequate access.

The Jakarta Special Region Law designates Jakarta as the national economic center and a global city, supporting sustainable national economic development. Jakarta's status as a global city is due to its role as a gateway connecting Indonesia to the global economy, hosting international activities in trade, investment, business, tourism, culture, education, and health, as well as being the location of headquarters for national, regional, and international companies and institutions.

The benefits of Jakarta's globalization include providing quality employment opportunities, a more environmentally friendly approach, improved human resources, and better infrastructure. The surrounding Bodetabek region is also expected to benefit from the shift in Jakarta's function, with universities and foreign representative offices potentially moving to the area and the development of integrated regional infrastructure.

Key Takeaways

• Jakarta's economy driven by tertiary sector, motor vehicle/repair businesses.
• Indonesia accelerating digital economy, empowering SMEs and tech startups.
• Digitalization, cybersecurity, and financial inclusion are government priorities.
• Jakarta designated as national economic center and global city by law.
• Globalization benefits include quality jobs, environmental focus, and infrastructure.