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Jakarta (; Indonesian pronunciation: [dʒaˈkarta] (listen)), officially the Special Capital Region of Jakarta (Indonesian: Daerah Khusus Ibukota Jakarta), is the capital of Indonesia. It lies on the northwest coast of Java (the world's most populous island). Jakarta is the centre of the economy, culture and politics of Indonesia. It has province level status which had a population of 10,562,088 as of 2020. Although Jakarta extends over only 699.5 square kilometres (270.1 sq mi), and thus has the smallest area of any Indonesian province, its metropolitan area covers 6,392 square kilometres (2,468 sq mi), and is the world's second-most populous urban area, after Tokyo. It has a population of about 35.934 million as of 2020. Jakarta's business opportunities, and its ability to offer a potentially higher standard of living than is available in other parts of the country, have attracted migrants from across the Indonesian archipelago, making it a melting pot of numerous cultures. Jakarta's nickname is "the Big Durian", after the thorny, strong-smelling fruit of that name that is native to the region. Calling Jakarta "the Big Durian" is seen as a nod to New York's nickname, "the Big Apple".
Jakarta is one of the oldest continuously inhabited cities in Southeast Asia. Established in the fourth century as Sunda Kelapa, the city became an important trading port for the Sunda Kingdom. At one time, it was the de facto capital of the Dutch East Indies, when it was known as Batavia. Jakarta was officially a city within West Java until 1960, when its official status was changed to a province with special capital region distinction. As a province, its government consists of five administrative cities and one administrative regency. Jakarta is an alpha world city and is the seat of the ASEAN secretariat, making it an important city for international diplomacy. Financial institutions such as the Bank of Indonesia, Indonesia Stock Exchange, and corporate headquarters of numerous Indonesian companies and multinational corporations are located in the city. In 2017, the city's GRP PPP was estimated at US$483.4 billion.
Jakarta's primary challenges include rapid urban growth, ecological breakdown, gridlocked traffic, congestion, and flooding. Jakarta is sinking up to 17 cm (6.7 inches) per year, which, coupled with the rising of sea levels, has made the city more prone to flooding. It is one of the fastest-sinking capitals in the world. In August 2019, as a result of these challenges, President Joko Widodo announced that the capital of Indonesia would be moved from Jakarta to the province of East Kalimantan on the island of Borneo.
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