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Jakarta Ranks No. 2 in Southeast Asia: Is Indonesia Becoming a Better Place for Long-Term Living?
Jakarta has recently ranked No. 2 in Southeast Asia in a global city ranking.
This year, BCG released the Intelligent Cities Index 2026, which looks at how “smart” cities are becoming. In simple terms, it examines whether a city has a clear development strategy, how effectively it uses AI and digital technology, whether its governance and infrastructure can keep up, and whether these investments actually translate into better urban services and everyday experiences.
For most people, a “smart city” isn't really about complicated technology. What matters in the end is how a city actually works in everyday life — and whether technology makes things more convenient for the people living there.
For many people, Jakarta may still be associated with being Indonesia's capital, a major Southeast Asian city, or simply a stopover before heading elsewhere.
But when this latest ranking is looked at alongside some of the changes happening across Indonesia, an interesting trend starts to emerge:
Indonesia is moving beyond its traditional image of tourism and natural resources.
Jakarta's Digital Transformation
Jakarta has been steadily pushing ahead with digitalisation in recent years.
One example is JAKI (Jakarta Kini), a city service platform designed for residents. It brings together public services, city information and various government services in one place.
JAKI currently connects 107 public services across 61 government agencies, while also gradually introducing AI-related features.
In September, Jakarta also received an “Outstanding City – Overseas Cities” award for its related initiatives.
So, what is really worth paying attention to isn't simply where Jakarta ranks in Southeast Asia. It's how these digital initiatives are gradually becoming part of everyday city life.
For people living in the city long term, the most noticeable change isn't necessarily how much AI the city is using. It's that some things that once required a trip to a government office or a lot of searching for information are increasingly moving online.
Residents can use JAKI to access public services, find city information, or report issues involving public facilities and the urban environment.
Each of these changes may seem relatively small on its own. But when you live somewhere for several years, these small conveniences can become a meaningful part of everyday life.
And Jakarta is only one part of Indonesia's broader urban development.
Beyond Jakarta, Indonesia is also building its new capital, Nusantara.
Indonesia's New Capital Is Slowly Taking Shape
Unlike Jakarta, which has developed over many decades, Nusantara is a new city being built from the ground up.
Roads, public facilities and smart-city planning are all moving forward.
If Jakarta represents the digital transformation of an established major city, Nusantara is taking a different approach:
building digital and smart-city concepts into the city from the very beginning.
Nusantara Is Building a “Smart City” Too
On September 2, the Nusantara Capital Authority (OIKN) and the U.S. Trade and Development Agency (USTDA) held a smart-city cooperation forum.
The discussions covered areas including data, artificial intelligence and smart buildings, with companies such as Honeywell, Cisco, IBM and Google also taking part.
Earlier this year, in February, USTDA announced US$2.49 million in technical assistance for Nusantara. The support covers areas including a smart-city blueprint, urban architecture, investment models and plans for future implementation.
Data, AI, smart buildings and urban management systems are gradually becoming part of Nusantara's overall city planning.
But technology and planning alone are not enough to make a city work.
At the most basic level, a city still needs roads, transportation and infrastructure.
And this is another area where Nusantara is continuing to move forward.
Behind the Smart-City Plans Is Still a City Under Construction
On September 18, the Nusantara Capital Authority released an update on its latest road infrastructure development.
From 2026 to 2027, Nusantara is set to move forward with three road infrastructure projects, with total investment of around IDR 3.986 trillion.
At the same time, seven road improvement projects launched in 2025 have already been completed and handed over, with total investment of around IDR 3.355 trillion.
These projects also show where Nusantara currently stands: the city is still very much in the process of being built and developed.
For a new city, things like roads, transportation and public facilities may sound basic, but they are ultimately what will have the biggest impact on everyday life.
How easy it is to get around, whether essential services are within reach, and how well the city connects to airports and commercial areas will all depend on how the infrastructure develops over time.
For people considering living in Indonesia long term, road construction isn't just an abstract investment figure. It can eventually affect practical questions such as where to live, how convenient the daily commute will be, and how long it takes to reach the airport or major commercial areas.
From digital services and smart-city planning to roads and other infrastructure, Nusantara is gradually putting together the basic framework of a new city.
Looking at Jakarta and Nusantara side by side also highlights two different stages of Indonesia's urban development:
Jakarta is upgrading.
Nusantara is being built.
So What Does This Have to Do With the E33 Second Home Visa?
If you're thinking about the next five or ten years, deciding whether a place is suitable for long-term living involves more than beaches and tourism.
Urban development, infrastructure and public services may sound like small details, but once you actually live somewhere, they become part of everyday life.
Jakarta is continuing to upgrade, while Nusantara is still being developed.
If you are considering spending several years in Indonesia, it may also be worth looking at your long-term residency options in advance.
Currently, Indonesia's E33 Second Home Visa provides a five-year stay that can be extended, with eligible family members able to accompany the main applicant.
Applicants are required to meet the relevant financial or property requirements. Under the financial route, this involves a US$130,000 fund placement commitment in accordance with the applicable requirements.
It's important to note that the E33 is primarily a long-term residency option. Any work, business or other activities in Indonesia are subject to the relevant Indonesian rules and immigration requirements.
If you are already considering spending extended periods of time in Indonesia or making Indonesia part of your long-term lifestyle plans, it may be worth looking into the E33 requirements and application process in advance.
Back to That Ranking
Jakarta's position among Southeast Asia's leading smart cities reflects some of the broader changes taking place across Indonesia.
The new capital, Nusantara, is still under development, while AI, data infrastructure and physical infrastructure are all continuing to move forward.
Indonesia is going through a period of ongoing urban and infrastructure development.
If you're simply visiting Indonesia as a tourist, some of these changes may not be particularly noticeable.
But if you're considering living overseas in the future, they are worth taking a closer look at.
Long-term residency options are also something worth understanding in advance.
The E33 Second Home Visa is one option to keep on the radar.
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