Economy of Jakarta

Manufacturing

Jakarta has some manufacturing industries. There are several iron foundries and repair shops, margarine and soap factories, and printing works. Machinery, cigarettes, paper, glassware, and wire cable—as well as aluminum and asbestos and, more recently, automotive products—are manufactured. There are also tanneries, sawmills, textile mills, food-processing plants, breweries, and a film industry.

Finance and other services

The cost of living in the city continues to rise. Land is expensive and rents are high. Industrial development and the construction of new housing are usually undertaken on the outskirts, while commerce and banking remain concentrated in the city centre. The Indonesian Chamber of Commerce is active in promoting trade with other countries; the annual Jakarta Fair (usually held from July to August) also serves to promote trade. Jakarta is the centre of roughly one-fourth of Indonesia’s trade and services and two-thirds of its banking and financial sectors.

To meet the needs of the local city population, the municipality operates several markets. The central city markets (Pasar Kota), like the markets of Pasar Senen to the east of the central city and Pasar Glodok in the Kota area, are major retail centres. The Pasar Jatinegara is primarily a food supply centre. The district markets are fairly large, with each one catering to a whole section of the city. There are also small neighbourhood markets, each serving only a limited area. Special markets include one selling fish, one selling used and new automobile parts, the Pasar Rumput flea market, and the Jalan Surabaya souvenir and antique market. Jakarta also has several general neighbourhood markets.

Transportation

Major road arteries lead west from the centre of Kota and east and south from the administrative centre in Gambir. Traffic congestion is a major problem, as is pollution. To the east a major railroad connects the city with all of the island of Java. There is also a highway, primarily a regional supply road, running between Jakarta and the agriculturally productive areas of East and Central Java. To the south a road and railroad connect Jakarta with Bogor, Sukabumi, and Bandung. To the west a railroad and road run to Banten and to the harbour in Merak, which is connected by ferry to Lampung in Sumatra.

The port of Tanjung Priok in Jakarta is the largest in Indonesia, handling exports from West Java and a large proportion of Indonesia’s import trade; many goods are transshipped to other islands or harbours.

Jakarta is served by several international airlines, by Garuda Indonesian Airways (the national airline, with international and domestic service), and by other domestic airlines. The city’s main international airport is located about 12 miles (20 km) to the west at Cengkareng, and a smaller facility is just to the southeast.

The central bus terminal, located on Lapangan Banteng, serves all the city, intercity, and regional bus lines; there are also suburban bus terminals in Jatinegara, Kebayoran, Grogol, Kota, and Tanjung Priok. The major railroad stations are in Kota and at Gambir in Medan Merdeka, Pasar Senen in the east, and Manggarai and Jatinegara in the south. Tanah Abang serves the west and traffic to Merak. Traffic jams occur particularly during the morning and afternoon rush hours. Public transportation in the city is by bus or minibus. The becak, or tricycle taxi, is used only for local neighbourhood transportation, and regular taxis now operate throughout the metropolitan area.

Government

Jakarta is formally classified as a special metropolitan district (daerah khusus ibukota). The city is thus at the administrative level of an Indonesian province, and its mayor has the same status as the governor of a province. Greater Jakarta itself is divided into five administrative municipalities. The mayor is responsible for supervising the administration of local government and for coordinating the local offices of national government ministries.

The city government is composed of two branches, the executive and the electorate. The executive consists of a governor assisted by four vice governors, an executive staff, and a regional secretary; there are also a number of city directorates, bureaus, and agencies attached to the executive. The electorate consists of select members drawn from political parties, the armed forces, and so-called functional groups. It is headed by a council of five members, one chairman, and four vice chairmen.

Municipal services

Public utilities are usually operated or owned by the Indonesian government. The State Electricity Company and the subsidiary State Gas Company both supply Jakarta. Postal and cable services and telephone services are supplied by state companies working under the aegis of the Department of Communications. Jakarta’s electricity comes from several sources; these include the thermal plant in Ancol, close to the port of Tanjung Priok, smaller diesel plants in various parts of the city, and the Jatiluhur hydroelectricity project located close to Purwakarta, about 70 miles (110 km) southeast of Jakarta. A thermal power plant operates in Surabaya.

The city government is responsible for the water supply. The city water is obtained in part from freshwater springs in the Bogor area, but most of the supply comes from the Pejompongan water treatment plant. Water is required mainly for domestic purposes but is also needed for industry and to supply ships. The removal of garbage and the provision of other sanitation services are also the responsibility of the municipality.

Health

Jakarta is the centre for many health facilities in Indonesia. There are more than two dozen major hospitals, including those operated directly by the Department of Health, the Roman Catholic Church, and a Protestant mission. Municipal hospitals serve separate areas of the city. In addition, there are several hundred general clinics or polyclinics located throughout the city. A quarantine hospital is in operation in Tanjung Priok. The city also operates a hospital and rehabilitation centre for the mentally ill and destitute, and there are many family-planning and child-care clinics.

Education

To meet the needs for primary education, many new elementary schools and secondary schools have been built, and a number of old school buildings have been renovated. There is a well-developed system of kindergartens, elementary schools, madrasahs (religious schools), secondary schools, and high schools. There are also many vocational and special schools and more than 100 universities, academies, and institutes for higher learning. The largest and best-known university is the University of Indonesia (founded 1950).