Simultaneous Regional Elections Projected to Increase East Java's Economic Growth

A total of 38 districts/cities in East Java will hold regional elections in 2024. Regional elections encourage consumption and economic growth.

KOMPAS/DEFRI WERDIONO

The atmosphere of the Synergy towards a Creative, Resilient, Tested, and Digitized Economy (Sekartaji) event with the theme "Inflation Control Synergy in Realizing Food Security and Economic Growth Resilience," held in Malang, East Java, on Tuesday (30/4/2024).

MALANG, KOMPAS — The implementation of simultaneous regional head elections in 2024 is expected to encourage consumption in East Java and ultimately encourage economic growth of 4.7-5.5 percent this year.

Deputy Head of Bank Indonesia (BI) East Java M Noor Nugroho conveyed this at the Synergy Towards a Creative, Resilient, Tested Economy event, and Digitalized (Sekartaji) with the theme "Synergy for Controlling Inflation in Realizing Food Security and Resilient Economic Growth", in Malang, East Java, Tuesday (30/4/2024).

Several parties were present on this occasion, including local governments in the office area of BI Malang's representative, including Probolinggo, Pasuruan, and Malang Raya.

”We hope that the simultaneous regional elections in semester II-2024 will provide a boost to consumption. With fairly strong consumption, the economy of East Java is expected to grow 4.7-5.5 percent in 2024 with the inflation rate which we hope remains within the target corridor of 2.5 plus or minus 1 percent ," he said.

There are 38 districts/cities in East Java that will hold local elections this year, including the election for governor and vice governor of East Java. According to Noor, it is inevitable that consumption will increase during the democratic celebration, including at the local level.

KOMPAS/DEFRI WERDIONO

Deputy Head of Bank Indonesia (BI) East Java M Noor Nugroho (right) with Head of BI Malang Representative Office Febrina during the door stop session at the Synergy Towards a Creative, Resilient, Tested and Digitalized Economy (Sekartaji) event. in Malang, East Java, Tuesday (30/4/2024).

Referring to how to anticipate a surge in consumption during the upcoming simultaneous local elections, Noor explained that one way is by ensuring sufficient food supply. Based on the information received, the harvest results are sufficient.

According to Noor, in line with the national economy, the economy of East Java grew positively in 2023 by 4.95 percent. Although it slowed down, it still grew quite high.

The economy of East Java is predicted to increase in the first quarter of 2024. The economy is mainly supported by domestic demand, especially household consumption, due to the disbursement of civil servant salaries, holiday allowances, and political tours ahead of the election.

Compared to 2023, the economic performance of East Java in 2024 is also expected to be higher. With a projection of 4.7-5.5 percent, there are several challenges and opportunities. One of them is the global economy that is expected to start stabilizing, although it is not yet strong enough.

Also read: The 2024 Simultaneous Regional Election is Believed to Be the Locomotive of East Java's Economy

"However, we also have some opportunities, such as high exports to ASEAN. There is potential to increase the value added of export products and to substitute imports for food and beverages," he said.

There are several efforts to maintain inflation, namely through strategies related to price affordability, supply availability, smooth distribution, and effective communication between central and regional areas.

How is inter-regional cooperation related to the supply of rice, shallots, chicken meat, and corn? Also, the implementation of cheap markets, including facilitating the establishment of kiosks and stalls for the sale of strategic food commodities.

KOMPAS/DEFRI WERDIONO

Acting Mayor of Malang Wahyu Hidayat served a door stop session during the Synergy Towards a Creative, Resilient, Tested and Digitalized Economy (Sekartaji) event in Malang, East Java, Tuesday (30/4/2024).

Until April 22, market operations have been carried out in 456 points in East Java for rice, oil, eggs, chili, and shallots.

"The more massive and widespread the implementation of inflation control, the hope is that it can keep inflation within the target range of 2.5 plus or minus 1 percent," he said.

Acting Assistant for Economy and Development of East Java Province, Joko Irianto, revealed that by 2023, the economic growth of the easternmost province on Java Island will reach 4.95 percent.

This makes East Java the second largest contributor to the economy in Indonesia, with a percentage of 14.22%, and the second largest gross regional domestic product on the island of Java, which is 24.99%.

Also read: Opportunity to Develop the Southern Region of East Java

According to Joko, the East Java inflation control team continues to strengthen its eight commitments for inflation control, ranging from affordable prices, supply availability, smooth distribution, and effective communication to maintain inflation on target.

Compared to 2023, the economic performance of East Java in 2024 is also expected to be higher. With a projection of 4.7-5.5 percent, there are several challenges and opportunities. One of them is the global economy that is expected to start stabilizing, although it is not yet strong enough.

Meanwhile, Acting Mayor of Malang, Wahyu Hidayat, said that inflation in his area is also under control until early 2024. In fact, deflation occurred at the beginning of 2024. The price increase that occurred before Christmas 2023 and New Year 2024 can be controlled. "Now it has gone up a bit due to the holidays and that is happening throughout Indonesia," he said.

There are several strategies to control inflation in the city of Malang, including holding cheap markets and inflation-fighting kiosks in traditional markets. There is also an idea to expand the same concept to the neighborhood level in order to control inflation.