Jakarta is still Indonesia's capital and its main economic engine. Recent rankings send mixed signals, however. Jakarta improved in the Oxford Economics (2026) and Kearney (2025) global-city indices but fell 11 places in the September 2026 Global Financial Centres Index, in which Ho Chi Minh City, Kuala Lumpur and Bangkok moved up.

Is Jakarta still the capital?

Yes. Law No. 2 of 2024 on the Province of the Special Region of Jakarta, enacted on 25 April 2024 and amended later that year, provides for the province to change from DKI ("Special Capital Region") to DKJ and designates Jakarta as the national economic centre and a global city. Under its own terms, the law takes effect only once the President issues a decree (Keppres) moving the capital.

On 12 May 2026, Indonesia's Constitutional Court rejected a petition in Decision No. 71/PUU-XXIV/2026. It held that the capital "shall remain in the Special Capital Region of Jakarta Province until the Presidential Decree" is issued. The next day, Governor Pramono Anung said that "as long as there is no Presidential Decree for the relocation, the capital city will remain in DKI Jakarta." As of 8 October 2026, NDNews could find no report that the decree has been signed.

Nusantara (IKN) in East Kalimantan is still being built. Presidential Regulation No. 79 of 2025 an update to the 2025 government work plan, sets a target for Nusantara to become the "political capital" in 2028. Its conditions include relocating or assigning between 1,700 and 4,100 civil servants to Nusantara. On 14 May 2026, a spokesperson for the Nusantara Capital Authority (OIKN) said the decision "provides the legal certainty needed to keep moving forward" (NDNews translation). In July 2025, OIKN head Basuki Hadimuljono confirmed Rp48.8 trillion for second-phase construction, to be spent through 2028.

For businesses, Jakarta's legal status has not changed, and the government's current plan targets 2028 for Nusantara's "political capital" role.

How big is Jakarta's economy?

  • Growth: Jakarta grew 5.21% in 2025, according to BPS Jakarta, up from 4.90% in 2024 (Bank Indonesia). Growth was 5.52% year on year in the second quarter of 2026 and 5.55% for the first half, BPS Jakarta reported. Accommodation and food services led, growing 9.52%. National growth was 5.29% in the second quarter and 5.45% in the first half (BPS).
  • Share of GDP: On 4 July 2026, Pramono cited Jakarta's share of national GDP as 16.67% in the first quarter of 2026. The report did not name a data source, and NDNews could not find the figure in a BPS release (iNews via RCTI+). Java as a whole produced 56.47% of GDP in the second quarter (BPS).
  • Outlook: Bank Indonesia expects Jakarta to grow 4.90%–5.70% in 2026.
  • Investment: Realised investment reached Rp173.6 trillion in the first half of 2026, according to Pramono. Investment Minister Rosan Roeslani put Jakarta's share at 17.2% of the national total (Indonesia Business Post).

For national context, see our Indonesia vs Thailand comparison.

What the global rankings say

Index (edition) Jakarta's position Change
Global Financial Centres Index 40 (Sept 2026) 97th, rating 645 Down 11 places from GFCI 39 (Z/Yen)
Kearney Global Cities Index (2025) 71st of 158 Up from 74th (Berita Jakarta)
Oxford Economics Global Cities Index (2026) 140th of 1,000 Up from 159th in 2025 (What's New Indonesia)
EIU Global Liveability Index (2025) 132nd of 173 Up 10 places (Time Out)

The EIU's 2026 index came out in July (ThePrint); NDNews could not verify Jakarta's 2026 rank.

Infrastructure: what is being built

  • MRT Phase 2A: This 5.8km extension from Bundaran HI to Kota has seven underground stations and costs about Rp25.3 trillion, funded by a loan from the Japan International Cooperation Agency (JICA). As of 25 July 2026 it was 62.68% complete, ahead of a 61.92% target (Berita Jakarta; Investortrust). PT MRT Jakarta has said it targets operation of the first section, Bundaran HI–Monas, by the end of 2027 and of the Kota end by the end of 2029 (Bisnis.com, 17 April 2026). Berita Jakarta's July report instead describes the first segment as Bundaran HI–Harmoni.
  • LRT Jakarta Phase 1B: The 6.4km Velodrome–Manggarai line, with five stations, began limited operations for invited users on 10 September 2026. A general trial runs from 12 October to 30 November (BCA Sekuritas). Pramono said an extension to Dukuh Atas is targeted for August 2028 (Investortrust).
  • Giant sea wall: Construction contracts have not yet been awarded. The Java Coast Management Authority (BOPPJ) is drafting a presidential regulation on a master plan covering about 575km of Java's north coast in 15 segments. The preliminary cost estimate is US$100 billion. President Prabowo said contracts might be awarded in early 2027 (Bisnis.com, 26 September 2026).

The persistent challenges

  • Traffic: In 2025, a 10km drive took 26 minutes 19 seconds on average. The congestion level was 59.8%, and drivers lost 125 hours in rush-hour traffic (TomTom Traffic Index).
  • Air quality: PM2.5 across greater Jakarta averaged 34.1 µg/m³ in 2025, nearly six times the WHO annual guideline of 5 µg/m³ (IQAir).
  • Subsidence and flooding: An assessment by the National Research and Innovation Agency (BRIN) puts average subsidence at 3.5cm a year. The same report says parts of the north have sunk by as much as 4 metres over four decades (The Jakarta Post via Asia News Network, January 2026). BRIN senior researcher Yus Budiyono told the paper: "Access to clean water must be fully provided so there is no reason for groundwater extraction."

How Jakarta compares with regional rivals

City GFCI 40 rank (change) Oxford Economics GCI 2026
Singapore 4 (unchanged) 29
Kuala Lumpur 39 (up 3) 65
Ho Chi Minh City 67 (up 17) 205
Bangkok 88 (up 12) 122
Jakarta 97 (down 11) 140

Sources: GFCI 40. Singapore's Oxford rank is confirmed by Oxford Economics. The other Oxford ranks are as reported by GNFI.

Singapore is still far ahead of the rest of the region. In Kearney's 2025 index it ranked 5th, and Bangkok reached 33rd, its best position to date. Ho Chi Minh City opened its International Financial Center on 11 February 2026, following Da Nang's in January. Vietnam's prime minister asked both cities to propose incentives to attract at least 50 international financial institutions within the first three years. On digital infrastructure, see our Southeast Asia data-centre count.

The Jakarta administration's plans

Pramono Anung and deputy Rano Karno were inaugurated on 20 February 2025 for the 2025–2029 term. In October 2025, Pramono set targets of putting Jakarta among the world's top 50 cities by 2030 and the top 20 by 2045. In February 2026, a year earlier than his first date, he cited 2029 for the top-50 goal, stressing transit, flood management and investor trust.

At the Jakarta Investment Festival in August 2026, the city offered 37 strategic projects worth Rp115 trillion, spanning transit-oriented development, utilities, logistics and coastal areas. "As governor, I invite you to invest in Jakarta. Jakarta will provide returns," Pramono said.

What to watch

  • The capital decree: whether and when the President signs the Keppres, and progress against the 2028 "political capital" conditions.
  • Q3 2026 data: BPS's next quarterly regional GDP release, expected in November.
  • LRT and MRT: whether the LRT moves to full commercial service after its trial ends on 30 November, and whether MRT Phase 2A stays on schedule.
  • Sea wall: the master-plan regulation and the early-2027 contract timeline.
  • Rankings: Kearney's 2026 report, if it follows last year's October timing, and the next GFCI, normally published in March.

Key numbers

  • 16.67%: Jakarta's share of national GDP in Q1 2026, as cited by the governor
  • 5.52%: Jakarta's year-on-year growth in Q2 2026, against 5.29% nationally
  • 97th: Jakarta's position in GFCI 40, down 11 places
  • 62.68%: MRT Phase 2A completion as of 25 July 2026
  • 3.5cm a year: average land subsidence, according to BRIN
  • 34.1 µg/m³: average PM2.5 in greater Jakarta in 2025

This article was researched with AI assistance and reviewed by the NDNews editorial team. It is based on official data and media reports as of 8 October 2026.