Business and Economics
Indonesia is the largest economy of ASEAN and Jakarta is the economic nerve centre of the Indonesian archipelago. The city generated about one-sixth of Indonesian GDP in 2008.
Jakarta’s nominal GDP was US$483.8 billion in 2016, which is about 17.5% of Indonesia’s.
According to Japan Center for Economic Research GRP per capita of Jakarta will be ranked at 28th place among the 77 cities in 2030 from 41st place in 2015, the largest in Southeast Asia.
Jakarta’s economy depends highly on manufacturing and service sectors such as banking, trading and financial. Industries include electronics, automotive, chemicals, mechanical engineering and biomedical sciences. The head office of Bank Indonesia and Indonesia Stock Exchange located in the city. Most of the SOE including Pertamina, PLN, PGN, Angkasa Pura, BULOG, Telkomsel, Waskita operate head offices in the city.
Major Indonesian conglomerates maintain head offices there such as, Salim Group, Sinar Mas Group, Astra International, Lippo Group, Bakrie Group, Ciputra Group, Unilever Indonesia, Djarum, Gudang Garam, Kompas-Gramedia, Lion Air, MedcoEnergi, MNC Group, CT Corp, Kalbe Farma and Emtek Group.
As of 2018, Jakarta contributes about 17 percent of Indonesia’s GRDP (Gross Regional Domestic Product).
Economic growth was 6.22 percent and 5.02 percent in 2017 and 2016 respectively.
Throughout 2017, total value of investment was Rp 108.6 trillion, about US$8 billion, an increase of 84.7 percent from the same period in 2016.
In 2014, per capita GDP was Rp 174.87 million or US$14,727. In 2015, GDP per capita was estimated Rp 194.87 million or US$14,570.
The largest contributions to GRDP were by finance, ownership and business services (29%); trade, hotel and restaurant sector (20%), and manufacturing industry sector (16%).
In 2007, the increase in per capita GRDP of Jakarta inhabitants was 11.6% compared to the previous year Both GRDP by at current market price and GRDP by at 2000 constant price in 2007 for the Municipality of Central Jakarta, which was Rp 146 million and Rp 81 million, was higher than other municipalities in Jakarta.
The Wealth Report 2015 by Knight Frank reported that 24 individuals in Indonesia in 2014 had wealth at least US$1 billion and 18 live in Jakarta.
The cost of living continues to rise.
Both land price and rents have become expensive. Mercer’s 2017 Cost of Living Survey ranked Jakarta as 88th costliest city in the world for expatriates.
Industrial development and the construction of new housing thrive on the outskirts, while commerce and banking remain concentrated in the city centre.
Jakarta has a bustling luxury property market.
Knight Frank, a global real estate consultancy based in London, reported in 2014 that Jakarta offered the highest return on high-end property investment in the world in 2013, citing a supply shortage and a sharply depreciated currency as reasons.