Cheap Hotels in Jakarta, Indonesia
Overview
Jakarta, a city with a rich history, holds the distinction of being one of the oldest continuously inhabited cities in Southeast Asia. Originally known as Sunda Kelapa, it served as a significant trading port for the Sunda Kingdom in the fourth century. Later, during the era of the Dutch East Indies, it became the de facto capital under the name Batavia. While Jakarta was initially considered a city within West Java, its official status changed in 1960, elevating it to a province with a special capital region distinction. As a province, it comprises five administrative cities and one administrative regency.
Today, Jakarta stands as an alpha world city and serves as the seat of the ASEAN secretariat. It boasts a thriving financial sector, housing institutions like the Bank of Indonesia, Indonesia Stock Exchange, and the corporate headquarters of numerous Indonesian companies and multinational corporations. In 2021, the city's Gross Regional Product (GRP) purchasing power parity (PPP) was estimated at an impressive US$602.946 billion.
However, Jakarta faces several pressing challenges. Rapid urban growth, ecological degradation, gridlocked traffic, congestion, and frequent flooding due to subsidence are among the key issues. The city is sinking at an alarming rate of up to 17 cm (6.7 inches) annually, making it one of the world's fastest-sinking capitals and more susceptible to flooding.
In response to these challenges, President Joko Widodo announced in August 2019 that the capital of Indonesia would be relocated from Jakarta to the planned city of Nusantara in East Kalimantan, located on the island of Borneo. This decision was subsequently approved by the MPR on 18 January 2022.