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      Economic opportunities associated with urban growth

      Lesson details

      Learning outcome

      I can explain how urban growth creates economic opportunities in Jakarta.

      Key learning points

      1. There are several important industrial areas located in Jakarta.
      2. Urban industrial areas have stimulated economic development in Jakarta.
      3. Urban growth has created a range of economic opportunities in Jakarta.
      4. Employment opportunities are changing from manufacturing towards services and from informal to formal sector employment.

      Keywords

      • Employment - the availability of jobs and work for people, often used to measure economic opportunity and development

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

      • Informal sector - 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, holidays

      Common misconception

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

      A large majority of jobs in Jakarta are actually in the formal sector rather than in the informal sector, and the share of informal sector jobs is decreasing over time.

      Teacher tip

      Indonesia's Central Bureau of Statistics has a wide range of data about employment in Jakarta (DKI Jakarta) which can be usefully compared with other provinces of Indonesia. The publications are all available in English.

      Licence

      This content is © Oak National Academy Limited (2026), licensed on Open Government Licence version 3.0
      except where otherwise stated. See Oak's terms & conditions
      (Collection 2).

      Lesson video

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      Prior knowledge starter quiz

      6 Questions

      Q1.
      Match the keywords to their definitions

      Correct Answer:Subsidence,Sinking of land often caused by human activity

      Sinking of land often caused by human activity

      Correct Answer:World city,A globally important city for trade or finance

      A globally important city for trade or finance

      Correct Answer:Natural increase,When birth rate is higher than death rate

      When birth rate is higher than death rate

      Q2.
      Which of these is a reason for Jakarta’s importance?

      It's in a remote rural area
      It has very little trade
      Correct answer: It is the capital and economic centre of Indonesia
      It has no major transport links

      Q3.
      What type of economic activity is common in Jakarta?

      Subsistence farming
      Correct answer: Technology and finance services
      Fishing and forestry
      Mountain tourism

      Q4.
      Jakarta is facing serious problems with land...

      Correct Answer: subsidence

      Q5.
      Why is population growing rapidly in Jakarta?

      Tourists are visiting more
      People are moving away
      There are fewer jobs
      Correct answer: Both natural increase and rural to urban migration

      Q6.
      What does it mean to call Jakarta a ‘world city’?

      Correct answer: It has global trade and finance links
      It's in every continent
      It leads the world in agriculture
      It has no influence outside Indonesia

      5 Questions

      Q1.
      Match the keywords to their definitions

      Correct Answer:Employment,The availability of jobs for people

      The availability of jobs for people

      Correct Answer:Formal sector,Jobs with contracts, taxes, and worker benefits

      Jobs with contracts, taxes, and worker benefits

      Correct Answer:Informal sector,Unregistered jobs with no tax or legal protections

      Unregistered jobs with no tax or legal protections

      Q2.
      Why do some people work in the informal sector?

      There are too many legal jobs
      Informal jobs are safer
      Formal jobs are always worse paid
      Correct answer: They may lack access to formal jobs

      Q3.
      Which of these is an example of a formal sector job?

      Selling fruit from a street cart
      Working in an unlicensed car repair garage
      Correct answer: Teaching at a government school
      Washing cars at a roadside

      Q4.
      What’s changing about the job market in Jakarta?

      Informal jobs are increasing rapidly
      Correct answer: More people work in the formal sector over time
      All jobs now pay the same
      No one pays taxes

      Q5.
      Why might someone wrongly believe most jobs in Jakarta are informal?

      They assume all urban jobs are insecure
      They confuse informal work with illegal work
      They think formal jobs are only in developed countries
      Correct answer: All of the above

      To help you plan your 10 geography lesson on: Economic opportunities associated with urban growth, download all teaching resources for free and adapt to suit your pupils' needs...