Jakarta Hatches a New Plan for Kota Tua

Jakarta Globe, Lenny Tristia Tambun, April 27, 2013

A scavenger sits near the neglected colonial-era building in Jakarta’s Kota Tua
(old town). (JG Photo/Afriadi Hikmal)

Jakarta plans to make Kota Tua, the capital’s historical precinct, a special economic zone as the government aims to realize the area’s tourism potential and stop centuries-old buildings from collapsing.

With the creation of the zone, economic development, infrastructure and restoration in the area would become the responsibility of a single government body.

“By establishing a Kota Tua special economic zone, all of the development will be done through a single door, run by a specialized authority,” Jakarta tourism and culture agency chief Arie Budiman said on Friday.

Arie said that currently development of Kota Tua is the responsibility of multiple agencies, each with their own programs and priorities.

The situation has deterred investors and building owners from harnessing the area’s tourism potential, leaving the buildings, 70 percent of which are privately owned, to be left in decay.

Despite laws stating that owners could be fined Rp 50 million ($5,100) to Rp 5 billion for neglecting their caretaker duties, few have braved the bureaucratic hurdles to obtain permits to restore the buildings.

For decades, several plans to revitalize the entire area have failed.

Jakarta Governor Joko Widodo has announced a new master plan to transform the area into a cultural tourism center. His administration pledged Rp 150 billion in 2014 to implement the changes. The Dutch government has also expressed its support of the new plan.

The focus of Joko’s plan is to make Kota Tua teem with creative industries such as fashion, food and handicrafts. At the same time, the governor aims to give the neighborhood a more exclusive feeling by attracting investment from high-end hotels, restaurants and galleries.

Arie said that turning Kota Tua into a special economic zone would allow authorities to conduct speedy restoration and infrastructure projects and ensure that they meet the governor’s vision.

But an economic zone formation requires a presidential decree, and according to Arie, the provincial government is still trying to formulate the details for the special zone. “We know that it is a long process,” he said, adding that it might take three to four years before Kota Tua is turned into a special economic zone.

But this will not stop restoration and infrastructure projects already planned by the government, which will start next year, according to Arie.

“There will be infrastructure [projects] like sidewalks, lighting, redirecting traffic as well as staging tourism events to make the place come alive,” he said.