TASK:What forces shape the vitality and structure of producer services and/or creative industries and/or tourism in your global city region (1500 words, 30%)? a) outline the major forces that shape the development of global city regions; b) illustrate how one or more of the forces are felt in any (you may discuss one or two or all) of the three economic sectors (i.e., producer services, creative industries, and tourism) in your GCR. With regard to the development of your global city region, the essay could include one or more areas in economic specialization, infrastructure improvement, and institutional integration. You are encouraged to use maps to illustrate spatial changes in your GCR.

GlossariesIn Indonesia, there are two types of administrative terminology used for city, they are Kotamadya and Kabupaten. This paper uses city to replace Kotamadya and Regency to replace Kabupaten. Services and Urban Tourism in Jakarta City RegionThis essay will discuss the major factors of the Jakarta City Region (JCR) development in the context of city regions. This essay firstly claims that JCR experiences economic restructuring regarding two different sectors. The first economic specialization rests on the services sector in the core city while the second sector is manufacturing which mostly located in peri-urban area. This essay also argues that the tourism industry is also a growing economic sector in Jakarta City Region beyond the national boundary. The first section of this essay will explore the economic restructuring of Jakarta City Region. Analysis regarding the economic specialization of JCR and its spatial distribution will be presented. Secondly, this essay will analyze the development of urban tourism in JCR, focusing on MICE and shopping tourism. Then short conclusion will close the essay.

IntroductionThis preliminary discussion aims to introduce the reader with the economic profile of Jakarta City Region. The table 1 shows the development of GDP for each municipality in this city region. DKI Jakarta, as the core of this city region, predominated the GDP income in the three recent years (figure 1) which indicates that this core is still economically dominant within this city region. Figure 1. GDP Distribution in Jakarta City Region (%)

Source: BPS DKI Jakarta (2014), BPS Kota Bekasi (2014), BPS Kabupaten Bekasi (2013), BPS Kabupaten Tangerang (2013), BPS Kota Tangerang (2013), BPS Kota Bogor (2013), BPS Kabupaten Bogor (2013), BPS Kota Depok (2013) Economic Restructuring of Jakarta City RegionJCR has experienced economic restructuring from manufacturing to services sector that predominantly occurred in the core area of this city region. In 1993, for example, manufacturing was the dominant sector in DKI Jakarta contributing 25.85% of the total GDRP, while finance and business service sector was only 17.61%. In 2008, the rate of the manufacturing sector decreased to 16.44% while the service and business sector increased to 29.41% (BPS 1993, 2008, in World Bank, 2012). In addition, Salim (2013) also demonstrates that the concentration of services and business sector in the JCR is extremely dominant in the core area (DKI Jakarta) shown by the service employment density map and trade density map below. Service and trade employment density map of JCR in 2000 Source: Salim, 2013

An example of the concentration of services sector of JCR will be exemplified by the data of financial sector. Sassen (2001) mentions that finance plays an important role in supporting other economic activities in the city by providing loans for other businesses, thus, the existence of this sector is very significant for global cities as a producer service. Furthermore, in terms of spatial distribution, central offices of producer services usually concentrate in the center of the city region (Han et al, 2009).Two forms of service producer in the financial sector which are banking and insurance will be presented as follows. The first table shows the location of foreign bank offices, foreign bank representative offices, and mix bank offices that entirely located in DKI Jakarta the core area of this city region. According to Firman (1998), the growth of this sector emerged in October 1988 after the national government permitted the operation of foreign banking sector in Indonesia. Several foreign banks only place their representative offices without fully operate. Some other banks are categorized as mix banks because their share were partially held by the local companies even though they are originally from outside Indonesia. Furthermore, the second table presents the list of insurance firm central offices that located in the core area of JCR. This fact supports the discussion that central offices of producer services in JCR are concentrating within the core area. Besides that, in the context of global city, the presence of these foreign firms also demonstrates that this core area of JCR is also connected with the global economic system. This condition is in line with the main characteristic of global city in which finance and business services is one of the drivers of the urban economics (Hutton, 2004).Table .Foreign Banks in Jakarta City Region, 2013NameCountry of OriginCentral Office Location

Foreign Bank Representative offices

JAPAN BANK FOR INTERNATIONAL COOPERATIONJapanDKI Jakarta

SUMITOMO MITSUI TRUST BANK. LTDJapanDKI Jakarta

THE EXIM BANK OF REF.OF CHINATaiwanDKI Jakarta

UNITED OVERSEAS BANK (UOB)SingaporeDKI Jakarta

ICICI BANKIndiaDKI Jakarta

BANK OF INDIAIndiaDKI Jakarta

WESTPAC BANKING CORPORATIONAustraliaDKI Jakarta

THE BANK OF NEW YORK MELLONUSDKI Jakarta

WELLS FARGO BANK, N.A.USDKI Jakarta

ING BANK NVNetherlandDKI Jakarta

NATIXISFranceDKI Jakarta

LANDESBANK BADEN-WURTTEMBERGGermanyDKI Jakarta

DRESDNER BANK AGGermanyDKI Jakarta

COMMERZBANK AG.GermanyDKI Jakarta

EFG BANKSwitzerlandDKI Jakarta

UNITED BANK OF SWITZERLAND AG SWISSSwitzerlandDKI Jakarta

Foreign Banks

BANK OF AMERICA, N.AUSDKI Jakarta

BANK OF CHINA LIMITEDChinaDKI Jakarta

CITIBANK N.A.USDKI Jakarta

DEUTSCHE BANK AG.GermanyDKI Jakarta

JP. MORGAN CHASE BANK, N.A.USDKI Jakarta

STANDARD CHARTERED BANKUKDKI Jakarta

THE BANGKOK BANK COMP. LTDThailandDKI Jakarta

THE BANK OF TOKYO MITSUBISHI UFJ LTDJapanDKI Jakarta

THE HONGKONG & SHANGHAI BANKING CORPUKDKI Jakarta

THE ROYAL BANK OF SCOTLAND N.V.UKDKI Jakarta

Mix Bank

BANK COMMONWEALTHAustraliaDKI Jakarta

BANK AGRISGermany (Commerzbank), UK (Barclay Bank), US (Chemical Bank)DKI Jakarta

BANK ANZ INDONESIAAustralia and NZDKI Jakarta

BANK BNP PARIBAS INDONESIAAustraliaDKI Jakarta

BANK CAPITAL INDONESIAFrance (LCL) and Malaysia (Maybank)DKI Jakarta

BANK DBS INDONESIASingaporeDKI Jakarta

BANK KEB INDONESIAKoreaDKI Jakarta

BANK MAYBANK SYARIAH INDONESIAMalaysiaDKI Jakarta

BANK MIZUHO INDONESIAJapanDKI Jakarta

BANK RABOBANK INTERNATIONAL INDONESIANetherlandDKI Jakarta

BANK RESONA PERDANIAJapan (Resona Bank), Hong Kong (Bank of East Asia)DKI Jakarta

BANK WINDU KENTJANA INTERNATIONAL-DKI Jakarta

BANK WOORI INDONESIAKoreaDKI Jakarta

BANK CHINATRUST INDONESIATaiwanDKI Jakarta

BANK SUMITOMO MITSUI INDONESIAJapanDKI Jakarta

Source: Bank Indonesia (2015a; 2015b) Table . Large and Foreign Insurance Firms in Indonesia, 2014Name of Insurance FirmCentral Office Location

ACA AsuransiDKI Jakarta

AIADKI Jakarta

ChartisDKI Jakarta

AXADKI Jakarta

WintherturDKI Jakarta

HartaDKI Jakarta

Sinar MasDKI Jakarta

Assist-Card GSA IndnesiaDKI Jakarta

PT. Asuransi Grasia UnisaranaDKI Jakarta

PT. Zurich Insurance IndonesiaDKI Jakarta

PT. Asuransi Allianz Utama IndonesiaDKI Jakarta

PT. ACE Ina InsuranceDKI Jakarta

PT. Asuransi Umum Mega InsuranceDKI Jakarta

PT. China Taiping Insurance IndonesiaDKI Jakarta

PT. Lippo Insurance Tbk.DKI Jakarta

PT Assurance Adira DinamikaDKI Jakarta

Asuransi MAGDKI Jakarta

Source VSF, 2014

While the economic restructuring occurred in the core area of JCR, on the other hand, manufacturing became more intense in the peri-urban area of this city region. This condition is illustrated by Hutton (2004) who argue that the decline of manufacturing sector in the core of global city region will take place and the manufacturers will move to the peri-urban area of the city region. Firman (1998) also argues that one characteristic of the global city in Asia is the spatial division of labor in which the function in core area is different with the function of the periphery area of the city region.

Spatial Distribution of Industry and Industrial Estates in JCR, 2011-2012

Source: JICA, 2012

The economic restructuring of JCR impacts the physical structure of this city region. Since the inner city became highly significant and condusive for services and business activity, the land price within this area extremely increased (Han.). This condition is one factor that pushes the outward development of this city region.

The following section will discuss the property development of JCR. It focuses on the large residential development and new town development in JCR. According to Winarso (2010), the development of large residential area in JCR spread out to the second-tier cities of JCR. The map below shows the spatial distribution of new residential areas in JCR. It is observed that the trend of this new development is around the western area of JCR, comprising Tangerang City and Tangerang Regency.

Those new residential development, to some degree, has created urban sprawl in JCR. The three maps below present the development of built-environment in JCR from 1995, 2000, and 2005 respectively. Source: IPB (2010)Urban Tourism in JCRThe most dominant tourism sub-sector in Global City Region is urban tourism such as shopping centre and mall (Han et al, 2015). This section will discuss the spatial distribution of shopping centres and malls in JCR area.

Number of international flightsYearInternational

DepartureArrivalTransit

200835870773457124138247

20093738056351467882706

201047949344782401549117

201147949344782401549117

20125720583580390023227

Source: BPS DKI Jakarta (2013)

Winarso (2010)

Winarso (2010)

Important reference:Winarso (2010)Firman (2010)Winarso et al (2002) Residential land development in Jabodetabek, Indonesia: trigerring economic crisisWinarso et al (2015) Peri-urban transformation in the Jakarta metropolitan areahttp://www.rap-japan.net/english/research_pdf/Indonesia/Indonesia_PropertyMarketOutlook-SingaporeApr2013.pdfhttp://www.colliers.com/-/media/files/marketresearch/apac/indonesia/jkt-1q2015-r1.pdfhttp://www.bi.go.id/id/publikasi/laporan-keuangan/alamat-bank/umum/Default.aspxhttp://www.bi.go.id/id/publikasi/laporan-keuangan/alamat-bank/asing/Default.aspx

Hutton, TA 2004, Service Industries, Globalization, And Urban Restructuring Within The Asia-Pacific: New Development Trajectories And Planning Responses, Progress in Planning, Vol 61, pp. 1-73.

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