Jakarta. Jakarta will likely continue to drive Indonesia’s economy despite the capital relocation to Nusantara, according to analyst Josua Pardede.

Indonesia is currently building its future capital in East Kalimantan. Earlier this month, President Joko “Jokowi” Widodo inked a decree acknowledging Jakarta’s significance as the country’s financial and business center. Josua recently said the new capital did not mean Jakarta would lose its role as the country’s economic center. 

The government has repeatedly said that they would continue to develop the metropolis’s economic potential despite the presence of Nusantara. 

“Even if we have Nusantara as the new capital, we believe that Jakarta will remain a productive city and can maintain Indonesia’s economic growth,” Josua, the chief economist at Permata Bank, told Beritasatu.com on Tuesday.

The government’s numerous initiatives to improve Jakarta’s infrastructure and public services have also made Josua more optimistic of its economic prospects. And this development is expected to attract more investments and generate new jobs, thus eventually spurring sustainable long-term economic growth. The flourishing entertainment sector would likely be pivotal to Jakarta’s growth, Josua said.

Josua added: “Hopefully, we can boost the services sector in Jakarta so we can limit the capital relocation’s impact.”

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