Jakarta is both Indonesia’s capital and largest city. It is the centre of economics, culture and politics in Indonesia. The Jakarta metropolitan area, known as Jabodetabek (a contraction of Jakarta, Bogor, Depok, Tangerang and Bekasi) comprises 6,392km2. It is the world’s second largest urban agglomeration (after Tokyo) with an urban population of more than 10 million, while Greater Jakarta has a population of 31 million6.
Jakarta is the seat of the ASEAN Secretariat, making it an important city for international diplomacy. Important financial institutions such as the Bank of Indonesia, Indonesia Stock Exchange, and corporate headquarters of numerous Indonesian companies and multinational corporations are in the city.
6 Source: Indonesia 2020 census
Surabaya is the capital of the East Java province, and the second largest city in Indonesia. The city has a population of over three million within the city, and over 10 million in the Greater Surabaya metropolitan area, known as Gerbangkertosusila.
As the provincial capital, Surabaya is the centre of economic, financial and business activities in East Java. Surabaya is also the second largest port city in Indonesia after Jakarta. As a business and trading centre, Surabaya is not only a hub for East Java, but also facilitates trade in Central Java, Kalimantan, and Eastern Indonesia.
Located an hour’s ferry ride from Singapore, Batam, Bintan and Karimun (BBK) are Free Trade Zones (FTZ) within the Riau Islands Province (KEPRI), with a collective population size of around 1.6 million. BBK is the most developed part of KEPRI, constituting 80% of KEPRI’s population and contributing to 73% of KEPRI’s economy. Manufacturing is the main economic activity in BBK, with multinational corporations (MNCs) such as Schneider Electrics, Pegatron and Infineon Technologies setting up their production bases to enjoy the FTZ benefits and connectivity to Singapore.
To develop the digital economy and maintenance, repair and overhaul (MRO) sector in Batam, Nongsa Digital Park and Batam Aero Technic in Batam were officially granted Special Economic Zone (SEZ) status in 2021. Companies in the SEZ can look forward to receiving fiscal incentives such as business tax breaks and income tax relief for workers, as Indonesia seeks to increase investments across these two sectors.