Largest city in the world. Economic Potential of 42 Million People in Jakarta.

Largest city in the world. Economic Potential of 42 Million People in Jakarta.

If every person in this city spends just RM1,500 per month?

Just this quick assumption on the potential for such a city of 42 million people? 42 million x RM1,500 = RM63 billion per month! Yea, this is why many companies set up their base in Jakarta. This is also why any ‘regional’ team in ASEAN must have an office in Jakarta. Else, something is wrong with their strategy team, if they have any. I know, maybe the current population does not yet spend RM1,500 per person per month. Just be reminded that it’s a matter of time.

Below are the world’s largest cities for 2025. One huge change is Tokyo, Japan because I remember reading many forecasts putting them as still the largest city even until 2030. Well, it’s just 2025 and Tokyo is now 3rd. If we look at 4th and 5th, I think it’s quite likely that when the next chart comes out, Tokyo would fall further to 5th… We will see when the next one will be coming out yeah.

Yes, I know, the new capital city is Nusantara…

Just remember, the distance alone between Jakarta and Nusantara is 1,236km. (As per google). If it’s flight, it’s slightly over 2 hours. (As per google again). Now imagine trying to move half of Jakarta over to Nusantara and one must realize this will take a very long time. I repeat, a long, long time… So, until then, the economic potential for Jakarta remains intact and companies must continue to open an office there in order to benefit from ASEAN’s total economic power.

How many properties are needed for 42 million people?

If we have 4 person to one home, we will need 10.5 million homes. Reported number of homes is just a few million. In other words, people are staying outside Jakarta… or they are somehow staying MANY people within one unit of property. Well, this also meant that the property is huge as soon as there are enough employment opportunities for every one and every one intends to own their own property in the near future. The question remains is how fast can people find employment and whether the salary earned by these working population could afford a new property.

Total Property transactions in Jakarta?

I have checked online. I could not find the total transaction number. However, there are many reports saying that the landed housing achieves over 80 percent take up rate. (Source: brights.id) Meanwhile it’s also the same for apartments. This clearly show the great potential from the demand and also the future supply potential. Hopefully property prices will not be rising too much and will just rise very slowly over the years to benefit Jakarta working professionals.

At the moment, I think the government is also doing the right thing because foreigners cannot buy a property but they can only lease a property for a limited period of time. Something like a leasehold.

Thanks for reading and learning about our neighbor, Jakarta. Yes, Jakarta is just 2 hours from KL too. Imagine the potential if Jakarta grows tremendously.

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