The Indonesian Constitutional Court decided in mid‑May, through Decision Number 71/PUU‑XXIV/2026, that Jakarta remains the nation’s capital.
Until a Presidential Decree formally designates Ibu Kota Nusantara (IKN) in East Kalimantan as the new capital, the Court’s ruling stands as the definitive legal position.
For property business players, this decision provides reassurance that Jakarta’s appeal as Indonesia’s economic center will not diminish.
“In recent years, concerns have arisen that moving the capital will diminish Jakarta’s attractiveness. However, data shows that Jakarta remains the center of national economic activity. As long as business activity, employment, and key infrastructure remain concentrated in Jakarta, property demand will remain strong,” said Firman Pamungkas, VP of Marketing at Rumah123, on Saturday (June 20, 2026).
Central Jakarta Highest Nationwide
According to Rumah123’s June 2026 Flash Report, Jakarta reaffirmed its position as the country’s property market hub. Search interest in the capital showed steady growth across several areas:
▪️ Central Jakarta recorded a 1.0% year‑on‑year increase, the highest nationwide.
▪️ South Jakarta posted a 0.6% rise.
▪️ East Jakarta saw a 0.2% gain.
▪️ West Jakarta led Greater Jakarta (Jabodetabek) on a monthly basis with a 1.2% increase.
▪️ South Jakarta also showed monthly growth of 0.9%.
▪️ North Jakarta climbed 0.6% month‑on‑month.
In the residential market, Central Jakarta posted the sharpest rise in house prices for units under 60 square meters, with the median reaching IDR 900 million — a 47.1% jump year‑on‑year.
Jakarta also leads in the commercial property sector. The CBD office occupancy rate in CBD area stood at 76%, while average base rents held at IDR 212,000 per square meter per month. With no new building supply added in Q1 2026, rental price stability is expected to continue over the next two years.
Going forward, Rumah123 projects that Jakarta and the IKN will play complementary roles. Jakarta is expected to remain the largest and most mature property market in Indonesia, while IKN and its surrounding areas will develop as a long-term market supported by infrastructure development and gradual regional economic growth.
