Jakarta , formerly (1949–72) Djakarta, Capital (pop., 2000: city, 8,347,083; 2003 est.: urban agglom., 12,300,000) and largest city of Indonesia. Located on the northwestern coast of Java, it was founded in 1527 after the sultan of Bantam defeated the Portuguese on the site.

Under the Dutch, it was known as Batavia (1619–1945), and was Djakarta (in Dutch) or Jakarta, during the Japanese occupation and the modern period. For a more detailed history of Jakarta before the proclamation of Indonesian independence, see Batavia, Dutch East Indies.

Economically, Jakarta plays several roles. It can be identified first as the national capital and a central place of control for the national economy, then as an administrative centre in its own right, and as a significant industrial hub. In addition, its location as a port makes it an important centre for trade.

Two factor: Urbanization. Jakarta has been the urban center even before Indonesian Independence. What used to be just a small fishing port of Sunda Kelapa, it grow into a port city as Dutch build warehouses to resupply it's ship going back and forth from eastern part of Indonesia.