Economic growth revised downwards for 2002<\/p>\n
Ahmad Junaidi, The Jakarta Post, Jakarta<\/p>\n
The city administration announced on Friday that the recent
\nBali bombing tragedy has affected the city's economic growth, and
\nhas forced a revision from the previously estimated 3.87 percent
\nto between 3.5 percent and 3.7 percent this year.<\/p>\n
\"There will be a greater impact on next year's economic
\ngrowth,\" city administration spokesman Muhayat told reporters at
\nCity Hall, revealing the results of an analysis made by the City
\nOffice of the Central Bureau of Statistics.<\/p>\n
Muhayat said due to the tragedy, which occurred on Oct. 12 and
\nclaimed the lives of more 190 people, the city has also had to
\nrevise the expected economic growth next year, down from 4.03
\npercent to between 3.4 percent and 3.9 percent.<\/p>\n
He said the growth of the trade, hotel and restaurant
\nindustries was predicted at 5.4 percent, but as a result of the
\nBali tragedy they would only grow by between 4.57 percent and
\n5.05 percent this year.<\/p>\n
According to the bureau, the number of foreign tourists was
\nearlier predicted to reach 1.3 million and had reached 914,742
\nvisitors to the country by September. It is now expected that the
\nnumber of tourists will decrease by 7.7 percent.<\/p>\n
The bureau predicts that the number of foreign tourists would
\nincrease slightly to between 1.2 million people and 1.25 million
\npeople next year although some countries, including the United
\nStates, have issued travel warnings to Indonesia. It said that
\nthe most of the tourists visiting Jakarta were from Asian
\ncountries that have not issued travel warnings.<\/p>\n
While the number of foreign tourists were estimated to
\ndecrease, domestic tourists to Jakarta were predicted to increase
\nfrom 6.66 million people this year to 6.83 million people next
\nyear, and to 6.99 million people in 2004.<\/p>\n
The administration predicted that the revenue from hotels and
\nrestaurants would not decrease next year, since about 75 percent
\nof tourists to Jakarta are locals. This year, the city has
\nestimated that they will secure Rp 470 billion in taxes from
\nhotels, restaurants and entertainment centers.<\/p>\n
Muhayat also said that government spending and public
\nconsumption contributed up to 64 percent of the city's economic
\ngrowth and as such, this year's economic program, called the
\nSubdistricts Residents' Empowerment (PPMK), was developed to help
\nincrease people's buying power.<\/p>\n
Household consumption is predicted to increase by between 4.92
\npercent and 5.01 percent next year, and between 4.67 percent and
\n4.76 percent in 2004; while government spending was predicted to
\nrise by between 3.95 percent and 4.02 percent next year, and
\nbetween 4.06 percent to 4.14 percent in 2004.<\/p>\n
As of October, inflation in the city had reached 6.7 percent
\nand it was predicted to reach between 9.5 percent and 10 percent
\nthis year due to the seasonal holidays of Idul Fitri, Christmas,
\nand New Year's.<\/p>",
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