Bank Indonesia is optimistic that Jakarta's economy will grow by 5.6 percent

Bank Indonesia DKI Jakarta is optimistic that DKI Jakarta's economy will continue to grow high in 2023 in the range of 4.80-5.60 percent. Growth is in line with continued economic acceleration as well as controlled inflation.

The following article was translated using both Microsoft Azure Open AI and Google Translation AI.

KOMPAS/RADITYA HELABUMI (RAD)

The contractor was at the location of the Jakarta MRT phase 2A project contract package (CP) 203 in the Glodok area, West Jakarta, on Thursday (21/10/2021).

JAKARTA, KOMPAS - The Bank Indonesia Representative Office in DKI Jakarta is optimistic that the economy of DKI Jakarta in 2023 is expected to continue to grow high in the range of 4.80-5.60 percent. This growth is in line with the continued acceleration of the national economy, which shows that the economy of DKI Jakarta is also growing, in addition to controlled inflation pressure.

Head of Bank Indonesia Representative Office in DKI Jakarta, Arlyana Abubakar, explained in a discussion with the media on Tuesday (15/8/2023) that as the national economic acceleration continues, the economic growth of DKI Jakarta also grows. In the second quarter of 2023, the economy of DKI Jakarta grew higher, reaching 5.13 percent (yoy) compared to the first quarter of 2023 which grew by 4.95 percent (yoy).

The economic growth of Jakarta has increased in the second quarter of 2023, primarily driven by the increased mobility of the community during Idul Fitri and Idul Adha. Additionally, there have been various national and international events held in Jakarta.

On the demand side, according to Arlyana, the economic growth of DKI Jakarta mainly comes from the performance of household consumption, investment, and government consumption. On the business sector side, the growth mainly comes from Information and Communication (Infocom) sector, the Trade sector, and the Company Services sector.

Also read: Jakarta Inflation Maintained Below 5 Percent

Arlyana continued, the increasing economic growth in DKI Jakarta is also accompanied by a relatively controlled inflation rate. In July 2023, Jakarta's inflation decreased from 3.20 percent (yoy) in June 2023 to 2.81 percent (yoy).

KOMPAS/PRIYOMBODO

Aerial photo of Jakarta landscape, Thursday (10/8/2023).

Based on this development, the economic prospects of DKI Jakarta in 2023 are estimated to remain high, ranging from 4.80-5.60 percent.

The main source of inflation pressure in Jakarta comes from the transportation group (gasoline), housing group (rental of houses), as well as the food, beverage, and tobacco group (rice, commercial chicken meat, filtered kretek cigarettes).

"Based on these developments, the economic prospects of DKI Jakarta in 2023 are estimated to continue to grow at a high range of 4.80-5.60 percent with controlled inflation pressure within the target of 3 ± 1 percent," said Arlyana."

To strengthen economic growth and maintain inflation in Jakarta, Arlyana added that Bank Indonesia in Jakarta has made several efforts. These include maintaining purchasing power and the sustainability of RT consumption growth by ensuring that inflation remains low and stable.

Then, optimizing and accelerating the realization of government spending, especially capital expenditures related to strategic projects, including increasing the electronic transactions of local governments, one of which is using QRIS.

Another effort, Bank Indonesia DKI Jakarta is pushing investment performance by ensuring the implementation of strategic projects according to the plan, improving the investment climate, and strengthening investment promotion through Jakarta Investment Forum and Investment Outreach abroad.

KOMPAS/RIZA FATHONI (RZF)

Workers distribute rice in PT Food Station Tjipinang Jaya (FSTJ) warehouse, Cipinang, East Jakarta, Wednesday (18/3/2020).

The President Director of PT Food Station Tjipinang Jaya, Pamrihadi Wiraryo, separately explained that in order to maintain controlled inflation, regional-owned enterprises particularly those involved in the food sector like Food Station have a crucial role to play.

Of the 11.24 million inhabitants of DKI Jakarta, approximately 1.15 million or around 10% of the total population are recipients of food subsidies. To obtain the food subsidy, Pamrihadi gave an example that if the market price is Rp. 100,000, they only need to pay Rp. 40,000.

"This means that there is a subsidy of up to 60 percent from the Jakarta Provincial Government. This makes it possible to control the price of food. With this sustainable program, since 2016, inflation in DKI Jakarta has been relatively lower than the national inflation," said Pamrihadi."

"In terms of price control, Food Station is collaborating with two other food BUMDs, namely Dharma Jaya for meat supply and Pasar Jaya."

"Speaking about inflation control, if inflation can be controlled, society or purchasing power will be better and able to buy more products," said Pamrihadi.

KOMPAS/PRIYOMBODO

Children were playing kites with the background of Jakarta landscape on the banks of the Kanal Banjir Barat, Tanah Abang, Central Jakarta, on Monday (26/6/2023).

Also read: Jakarta's 2023 Economy is Projected to Grow Positively in the 5 Percent Range

To control inflation, the Food Station, which also manages the Cipinang Rice Main Market, always provides clear information regarding rice supply and rice price movements in real time, including varieties and quality so that the public has an overview.

With clear information, Food Station is also making efforts to make rice prices affordable, ensure availability of supplies, and ensure smooth distribution.