Indonesia Minister of Finance Announces Change of Jakarta’s Status from Special Capital Region to Special Jakarta Region

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Indonesia’s Minister of Finance, Sri Mulyani Indrawati, made a significant announcement regarding the status change of Jakarta’s Special Capital Region. Following Law No. 3 of 2022 on the National Capital City, which mandates the revision of Law No. 29 of 2007 concerning the Special Capital Region of Jakarta as the capital of the Unitary State of the Republic of Indonesia, Sri Mulyani announced that Jakarta will now be referred to as the Special Region of Jakarta.

The statement comes as a part of the government’s broader plan to relocate the national capital from Jakarta to a new location, as outlined in the Law on the National Capital City (Ibu Kota Negara – IKN). This relocation aims to address issues related to overpopulation, traffic congestion, and environmental challenges in Jakarta while promoting the development of other regions of the country.

Minister Sri Mulyani addressed the media on Friday, the 15th of September, 2023, to explain the reasoning behind this change. “The relocation of the national capital city, as mandated by the IKN Law, necessitates the alteration of Jakarta’s status from the ‘Special Capital Region’ to the ‘Special Region of Jakarta’,” she stated.

the new IKN which replace Jakarta as Indonesia's capital city
Source detik.com

This change in terminology reflects Jakarta’s evolving role within Indonesia. While Jakarta will no longer be the nation’s capital, it will remain a significant economic and cultural hub. The transformation from a “Special Capital Region” to a “Special Region of Jakarta” underscores the government’s commitment to the city’s continued growth and development.

The transition process is expected to be gradual, with various government agencies and stakeholders working together to ensure a smooth shift in administrative and governance structures. Jakarta will continue to play an essential role in Indonesia’s development, and this status change  is a testament to the government’s forward-thinking approach to urban planning and development.

As the nation prepares for this historic transition, it will be crucial to monitor how this change impacts Jakarta’s identity and role in Indonesia’s future. The government’s decision to rename the city as the “Special Region of Jakarta” marks a significant step in the nation’s journey towards a new capital city and underscores the importance of regional development in the country’s overall progress.

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