Global-Local Dynamics in the Transformation of the Jakarta Metropolitan Area into a Global City-Region

Abstract

This paper investigates the way in which factors at the global and local level interact in the emergence and development of “global city-regions”, which are deemed to be the contemporary growth machines of the global economy. To this end, this paper takes the Jakarta metropolitan area (JMA) as a case to investigate its evolution in the context of the intertwined dynamics of foreign direct investment (FDI) inflow and state intervention over the past three decades. The findings indicate that from a macro-level perspective the JMA has maintained its position as the country's hotspot for manufacturing investment embedded in East Asian production networks. In addition, we find that the national state has continuously privileged the JMA as the main grounds for national economic development in spite of the country's shifting political system. We reveal how the nexus between “global” forces (incoming FDI) and “local” conditions (the state's strategic intervention) has led to the development and restructuring of the JMA as a global city-region.