Lesson video

Hello and welcome.

My name's Ms. Harrison.

I'm so excited to be learning with you today.

Grab everything you might need for today's lesson and let's begin our learning.

By the end of this lesson, you'll be able to explain how urban growth creates economic opportunities in Jakarta.

Before we can begin this learning, we need to define the keywords that we'll be using throughout today's lesson.

The key words are: employment, formal sector, and informal sector.

Employment, this availability of jobs and work for people, often used to measure economic opportunity and development.

Formal sector, these are jobs which pay tax to the government and which come with legal contracts and benefits like a regular salary, sick pay, and pensions.

The informal sector, these are jobs which are not registered with the government and illegally avoid paying tax, and which do not have any protections for workers such as contracts, insurance against accidents, sick pay, and holidays.

Now that we've defined these keywords, we can begin our learning.

The first topic in today's lesson is industrial areas and economic development.

Jakarta has several different industrial areas, each with a different type of activity.

In the north we find Tanjung Priok Port, which is a major shipping hub.

This area is home to many large-scale industries like factories and warehouses because it's close to the sea and easy for transporting goods in and out of the city.

Moving to the west, we find mostly small-scale industries.

These might include things like clothing workshops, food processing, or local crafts.

They're important for providing jobs, especially for people living nearby.

In the east, there are several major industrial sectors too.

This part of the city is also home to Jakarta's second international airport, which makes an ideal location for industries that depend on fast transport and logistics.

Each of these areas play a different role in the city's economy and provides different kinds of employment.

North Jakarta is home to some of the city's largest industries.

These include oil refining, which include oil processed into fuel and other useful products, vehicle manufacturing, including the production and assembly of cars and motorbikes, food processing where food is packaged or prepared for sale and distribution.

And these industries are a major source of jobs and contribute significantly to Jakarta's economy.

Tanjung Priok is located in North Jakarta and it's the largest and busiest port in Indonesia.

It handles around 50% of Indonesia's international trade, making it absolutely vital for the country's economy.

This includes everything from electronics and machinery to food products and raw materials.

For industries in Jakarta, Tanjung Priok provides a fast and efficient link to global markets.

Factories and processing plants can export goods easily, helping them stay competitive and profitable.

The port also plays a crucial role in bringing in raw materials needed for production, things like oil, metal, chemicals, and vehicle parts.

Without the port, many industries in North Jakarta wouldn't be able to operate at the same scale or efficiency.

The location of the port helps to attract large-scale industries to the area such as oil refining, car manufacturing, and food processing because it reduces transport time and costs.

In short, Tanjung Priok isn't just a port.

It is a vital part of what makes Jakarta a major industrial and economic centre, both within Indonesia and across Southeast Asia.

East Jakarta is one of the city's key industrial zones with a strong focus on manufacturing.

This area has many large factories, including industries like textile production, electronics manufacturing, and vehicle manufacturing.

A number of foreign car companies have invested in East Jakarta, building a large car factories and creating thousands of jobs.

These industries rely on skilled workers and are important for both the local and national economy.

One key feature of East Jakarta is that residential housing surrounds many of these factories.

This means that people often live very close to where they work, which can reduce travel time, but also creates challenges like noise pollution, traffic congestion, and potential health risks from industrial activity.

East Jakarta is also well connected by major roads and transport routes, making it a good location for industries that need to move goods quickly and efficiently.

West Jakarta is known for its small and medium-sized industries.

These businesses produce things like textiles, household products, car parts, and mechanical components.

Unlike the large factories in East and North Jakarta, these industries are often family-run or locally-owned, and they don't take up as much space.

A key feature of West Jakarta's industrial areas is that factories are mixed in with residential housing.

People live and work in the same area, which helps reduce commuting times and keeps costs low for businesses.

However, having factories close to homes can create problems such as noise, air pollution, and traffic from delivery vehicles.

These small industries are an important part to the local economy, but they also raise questions about how to manage land use in a safe and sustainable way.

In which region of Jakarta is Tanjung Priok located? Pause the video here whilst you decide and press play when you're ready to continue.

Excellent.

The answer is A, North Jakarta.

Well done if you identified that correctly.

Jakarta's industrial growth has played a major role in boosting both the city's economy and the economy of Indonesia as a whole.

Today, Jakarta generates around 230 billion US dollars every year, which makes up about 17% of Indonesia's total GDP.

This makes it the economic heart of the country.

The success of Jakarta's industries from car manufacturing to textiles and electronics has created millions of jobs, not just in factories, but also in transport, retail, and other supporting services.

These job opportunities are a powerful pull factor, attracting people from all over Indonesia who are looking for work and a better standard of living.

While this economic growth has brought about benefits, it also comes with challenges such as rapid urbanisation, overcrowding, and of pressure on housing and infrastructure.

When companies invest in industries and cities, the first major effect is the creation of jobs.

These employment opportunities are one of the main reasons people move to cities like Jakarta.

People come looking for work, and industry is what draws them in.

Many of Jakarta's industrial areas are focused on exports.

For example, some factories manufacture cars that are then sold to other countries in Southeast Asia.

In fact, a lot of global economic growth comes from trade between countries and cities like Jakarta grow quickly when their incomes are export-led.

Industries also leads to innovation.

As new technologies are introduced often by foreign companies investing in Jakarta, they spread to other industries too.

These foreign firms bring advanced equipment, new ideas, and more efficient production methods.

As a result, the local workforce becomes more skilled.

People moving from rural areas into the city learn new skills in factory jobs and many young people in Jakarta choose college or training courses that help them to qualify for better paid work within the city's industrial sectors.

This investment from abroad, known as foreign direct investment, brings in more money.

It supports the growth of key industries like vehicle manufacturing and textiles, not just in Jakarta but in overall Java.

And here's where the multiplier effect comes in.

Once the city starts to grow economically, that growth helps to keep creating more growth, more industry leads to more jobs, and more jobs attract more people, and more people need more services, shopping, housing, transport, and that creates even more jobs.

So as the country grows, the government collects more money in taxes, and this allows it to spend more on infrastructure like roads, power, and transport systems. These improvements make it cheaper and easier for industries to operate, which encourages even more growth.

So you can see how industrial development can transform a city like Jakarta.

Boosting jobs, trade, education, investment, infrastructure are all feeding into each other.

When factories open in a city like Jakarta, the benefits go far beyond just producing goods.

One new industry can trigger a chain reaction of growth, and this is called the multiplier effect.

And here's how it works.

First, factories need workers, which means more jobs are created.

As people start working, they earn wages, and with that income, they then begin spending on things like food, clothes, transport, and services.

This extra spending increases demand for goods and services, which leads to more shops and more businesses and more growth.

As the economy expands, the government earns more tax revenue from both businesses and workers.

With that money, the government can invest in better infrastructure, things like roads, electricity, and public transport.

These improvements make it easier for businesses to operate and reduce the cost of production.

And as a result, more companies are going to choose to invest, especially manufacturing, creating even more jobs and starting the cycle all over again.

This is the multiplier effect.

One investment in industry sets off a chain of spending, growth, and further investment, helping the whole city develop faster.

True or false? A multiplier effect happens when an initial investment in industry leads to wider economic growth.

Pause the video here whilst you decide and press play when you're ready to continue.

Fantastic, this statement is true.

I would now like you to explain why.

Pause the video here and press play when you're ready to continue.

Excellent.

The reason why this statement is true is because when a new factory opens in a city, it creates more employment opportunities, which means more wages are being earned, which workers then spend in the city, creating more demand for products and services, which encourages more economic development.

Well done if you managed to include some of those points in your answer.

I would like you to study these two images of Jakarta's main port, Tanjung Priok, and I would like you to identify the main change.

Pause the video here whilst you decide and press play when you're ready to continue.

Excellent.

Let's check our answers.

The main change is here.

I circled it on the screen.

And this is when new land has been created here.

Well done if you identified that as well.

I would then like you to explain why expanding Tanjung Priok Port should increase Jakarta's economic development.

Terms you should use in your answer are things like multiplier effect, employment, export earnings, infrastructure improvements, and foreign investment.

Pause the video here whilst you attempt this task and press play when you're ready to continue.

Fantastic.

Let's check our answers.

Your answer could include some of the following points.

Expanding Tanjung Priok will increase its multiplier effect on Jakarta's economic development.

As well as creating new employment in the port, the industries that rely on Tanjung Priok for exporting their product and importing their raw materials can also expand and take on more workers.

This is because their export earnings will increase as an expanded Tanjung Priok Port is able to ship out more of their products more quickly and efficiently.

The infrastructure improvements at the port will attract more foreign investment, such as companies who want to build their products in Jakarta's industrial areas and export them globally from Tanjung Priok.

Well done on this task.

I hope you manage to include some of those points in your answer.

We're now going to explore our second topic, economic opportunities in Jakarta.

As Jakarta's growth has continued, employment opportunities have changed.

What changes can you spot? Pause the video here whilst you decide and press play when you're ready to continue.

Excellent.

Let's take a closer look.

Although manufacturing has helped to drive up Jakarta's growth, the percentage of jobs in the sector has reduced over time.

In the year 2000, around 40% of all jobs in Jakarta were in manufacturing.

By 2023, there's a drop to just 25%.

At the same time, the total number of people working in the city has grown from about 3.

5 million in 2000 to 4.

8 million in 2023.

So even though there are still lots of jobs in industry, a smaller share of people now work in manufacturing.

More people are now employed in other sectors like retail and services, which now makes up 30% of jobs, the informal sector at 15%, and fast growing fields like tech and digital at 12%.

This shows that Jakarta's economy is becoming more diverse.

As cities grow, they often shift from relying mainly on industry to having more jobs in services, technology, and education.

Sam, Jacob, and Aisha have ideas about the fall in manufacturing shares of employment in Jakarta.

Who do you think has the best answer? Is it Sam? "Are there fewer jobs in manufacturing in Jakarta now than in the past?" Jacob? "Are fewer people working in Jakarta? Has unemployment gone up?" Or Aisha? "Has employment and other sectors gone up: the service sector, for example?" Pause here whilst you have a think and press play when you're ready to continue.

Excellent, the correct answer is Aisha and Sam.

Let's take a closer look why.

Sam was correct.

Over the last 15 years, the number of jobs in manufacturing in Jakarta has fallen by 150,000.

Aisha was correct.

Since 2000, the share of employment in retail and services and in education have both increased by 5% while tech and digital share has increased by 10%.

Jacob was not right.

The number of jobs in Jakarta has not fallen, it has increased by over 1 million.

The percentage of unemployed people has fallen too.

Well done if you identified those correctly as well.

Which graph shows a growth in the tertiary and quaternary sector since 2000s? Pauses the video here whilst you decide and press play when you're ready to continue.

Excellent.

The correct answer is B.

Well done.

Jakarta is no longer just a centre for manufacturing.

It's now merging as a major tech city in Southeast Asia.

Across the city, new technological zones, digital parks and innovation centres are being developed.

These zones are designed to attract tech companies, startups, software developers, and research organisations.

They often include office spaces, training centres, and digital infrastructure such as high-speed internet and data centres.

This shift is changing how the city looks and works.

Older industrial areas are being replaced or modernised, and new urban areas are being planned around the needs of technology-based industries.

The tech zones are helping create cleaner, smarter, and more efficient urban environments.

Technology is also changing the types of jobs available.

More people are now employed in fields like app development, AI, digital marketing, and cybersecurity.

Young people in Jakarta are increasingly choosing university courses or vocational training that prepare them for these modern careers.

Foreign tech firms are also investing in the city, helping Jakarta to become more globally connected.

With more innovation, high productivity, and skilled jobs, the city is becoming a key player in Southeast Asia's digital economy.

This transformation is part of Jakarta's move from being an industrial city to a knowledge and innovation-based economy where information, ideas, and technology drive growth.

One of the most important examples of Jakarta's shift towards a tech-based economy is BSD City.

BSD City is Jakarta's leading tech cluster.

It has become a centre for digital industries, attracting both skilled workers and major investment.

Over 300 companies are based in BSD City, many of them working in technology, logistics, and advanced manufacturing.

These include startups, global firms, and innovation labs developing new products and services.

But what makes BSD City especially successful is how well connected it is.

It has strong transport links including toll roads, commuter rail, and planned future metro lines, making it easily accessible for workers commuting from all over Jakarta.

The development of BSD City shows how Jakarta is adapting to the needs of a modern economy by creating smart, well-planned urban spaces where businesses, education, and technology come together.

Jakarta is attracting major global companies, and this is creating new economic opportunities across the city.

Big international brands like Nike, Netflix, Toyota, and Unilever are beginning to invest in Jakarta and now opening factories, offices, and regional headquarters, bringing in money, jobs, and new ideas.

These companies are offering a wide range of professional jobs.

This includes roles in manufacturing, finance, human resources, logistics, and customer services.

It's not just factory work anymore.

Global businesses are creating more white collar jobs that require higher level skills.

As a result, the type of skills needed are changing.

Many companies are looking for people with tech skills such as data analysis, digital design, or coding.

Being able to speak multiple languages, especially English, is also a big advantage when working with international teams. This kind of foreign investment is helping Jakarta's workforce become more skilled and it's shaping the city into more global and competitive economy.

What do global companies like Nike, Netflix, Toyota, and Unilever bring to Jakarta? Pause the video here whilst you decide and press play when you're ready to continue.

Excellent, the answer is B, jobs in marketing, HR, finance, and logistics.

Well done if you identified that correctly.

Even though the percentage of people working in manufacturing has gone down, it's still a major part of Jakarta's economy.

Today, around 500,000 people in Jakarta are employed in manufacturing.

That's about one in every 10 workers.

So it's still a key source of jobs, especially in sectors like food processing, textiles and vehicle production.

Some factories still employ large numbers of people, especially in industries that rely on manual work.

But many modern factories are now using automation, machines, and technology to do tasks that used to require human workers.

This means some companies are producing more with fewer employees, which can reduce costs, but also means fewer job opportunities in certain areas.

So while manufacturing is essential, it's changing, and future jobs in the sector may need more technical skills than ever before.

Another important change in Jakarta's economy has been the shift in the informal sector.

In the year 2000, around 20% of jobs in Jakarta were in the informal sector, and these are jobs that aren't officially registered, like street vendors, domestic workers, waste pickers, or people doing casual labour without contracts.

By 2023, there's a drop to 15%.

There's still a large number of people, but it shows that more jobs are now informal sectors like retail services and tech.

The drop in informal employment suggests that Jakarta's economy is becoming more organised and better regulated.

It also means that more workers are gaining access to stable jobs, job security, and legal protections.

However, the informal sector still plays a big role in the city's economy.

For many people, especially those who migrate from rural areas, informal jobs are often the easiest way to start earning money in the city.

So even though the share is shrinking, the informal sector continues to be an important part of daily life and a key part of how Jakarta works.

What does that mean for economic opportunities? Pause the video here whilst you have a think and press play when you're ready to continue.

Excellent.

Well done.

In fast growing cities like Jakarta, informal sector jobs are very common, especially when there is high levels of rural to urban migration.

Many people move to Jakarta from rural areas and such for work.

But when they arrive, they often don't have the qualifications or formal skills needed for jobs in offices, factories, or the tech sector.

That's where the informal sector comes in.

It offers jobs that are easy to get even without paperwork, training, or education, though they get usually low pay and offer no job security.

Common informal sector jobs in Jakarta include street vendors selling food, clothes, or household items, motorbike taxis, domestic workers in private homes, construction workers, waste pickers who collect and sort recyclable materials from rubbish dumps or on the streets, and porters who carry goods for businesses and markets.

These jobs are important for survival, especially for new arrivals, but they often come with poor working conditions and no legal protections, which makes people vulnerable to exploitation.

Even though Jakarta's economy is growing, the informal sector remains a vital part of the city's workforce, especially for those with limited options.

As more people in Jakarta move into formal sector employment, the city's economy and job market are starting to change in big ways.

Firstly, formal sector jobs usually offer better pay and more job security.

Workers are more likely to have contracts, which means that they get regular hours and access to benefits like healthcare or pensions.

We are also seeing a shift from casual, low-skilled work to more advanced businesses.

For example, jobs and offices, retail, finance, and tech are starting to replace informal street selling or temporary labour.

This shift is attracting more investment into the city.

Businesses are choosing to locate in Jakarta's growing industrial parks, business districts, and tech hubs where they can find skilled workers and good infrastructure.

As jobs requirements rise, so do education and skill levels.

More young people are studying business, IT, and engineering to qualify for better jobs, helping to build a more competitive and skilled workforce.

And finally, formal sector growth leads to improved infrastructure.

With more companies paying taxes, the government has more money to invest in transport, energy, and public services, making the city more efficient and better connected.

So the growth of the formal sector is reshaping Jakarta, making it a more modern, skilled, and economically powerful city.

True or false? As it is a city in a Newly Emerging Economy, most economic opportunities in Jakarta are in the informal sector.

Pause the video here whilst you decide and press play when you're ready to continue.

Excellent.

This answer is false.

I would now like you to explain why.

Pause the video here and press play when you're ready to continue.

Excellent.

The reason why this statement is false is because a large majority of jobs in Jakarta are actually in the formal sector rather than the informal sector, and the share of informal sector jobs is decreasing over time.

Well done if you explained that correctly.

Alex has written an answer to describe how Jakarta's growth has created economic opportunities.

I would like you to correct his mistakes.

Pause the video here whilst you attempt this task and press play when you're ready to continue.

Fantastic.

Let's check our answers.

Alex said, "Jakarta does not have many jobs because most people are unemployed." You might have said, "Jakarta provides many employment opportunities in tech firms and the sub-sector like marketing and finance, and in manufacturing.

Unemployment is falling in the city." Alex said, "There are no factories anymore." You might have said, "Although there has been a decrease in manufacturing jobs, Jakarta has many factories including vehicle manufacturing, food processing, and textiles." Alex said, "And no international companies want to invest there." You might have said, "Jakarta attracts global businesses like Toyota and Unilever that are opening offices and factories, creating new economic opportunities." Alex says, "The only work that people can find tends to be casual, low paid employment in the informal sector." You might have said, "Jobs are available for both skilled and low-skilled workers.

The share of informal sector jobs is starting to decrease.

Well done on this task.

You've done brilliantly.

And I hope you manage to include some of those points in your answer.

We've now come to the end of our learning on economic opportunities associated with urban growth, and you've done brilliantly.

But before we end this lesson, let's summarise everything we've learned today.

Industrial areas have played a major role in stimulating economic development in Jakarta.

These areas have attracted investment, created jobs, and helped the city grow into an economic sense in Southeast Asia.

As Jakarta has urbanised, it has experienced rapid urban growth leading to a wide range of new opportunities for people living in and moving to the city.

Factories, business parks, shopping centres, and tech hubs have all developed transforming the city's economy.

In the past, most economic activity was based on manufacturing such as textiles, car production, and food processing.

While manufacturing is still important, there has been a clear shift towards service-based industries.

These include finance, retail, logistics, marketing, education, and digital technology, all of which of more skilled and better paid jobs.

At the same time, employment is shifting from the informal sector to the formal sector.

Fewer people rely on casual jobs like street vending or waste picking, and more people are now working secure, registered jobs with proper wages, contracts, and legal protection.

This transition is helping Jakarta develop a more modern, diverse, and stable economy.

It's also improving people's quality of life by providing greater job security, access to training and education, and better working conditions.

Well done in today's lesson.

You've done brilliantly.

And I look forward to learning with you again very soon.