BI DKI states Jakarta contributes 16.67% to national economy

Jakarta (ANTARA) - The Bank Indonesia Representative Office (KPw BI) for DKI Jakarta states that Jakarta’s economy contributes 16.67% to the national economy and continues to maintain its role as Indonesia’s largest economic centre. “In the first quarter of 2024, Jakarta’s economy continued to grow strongly at 5.59% (yoy), in line with the national economic growth recorded at 5.61% (yoy),” said the Head of KPw BI DKI Jakarta, Iwan Setiawan, in Jakarta on Wednesday. He stated that the 5.59% economic growth contributes a 16.67% share to the national economy. This condition, according to Iwan, keeps Jakarta maintaining its role as Indonesia’s largest economic centre. According to him, this positive performance is supported by solid domestic demand, continued investment growth, and the performance of key business fields, particularly trade, information and communication, as well as accommodation and food services. “From the demand side, household consumption grew by 5.72% (yoy), an increase from the previous quarter’s 5.51% (yoy),” Iwan said. He explained that the increase in household consumption was driven by rising public consumption, in line with the long festive season period of National Religious Holidays (HBKN) such as Ramadan and Eid al-Fitr, Chinese New Year, and Nyepi, as well as supported by the organisation of various major events. In addition, public purchasing power remains stable along with the increase in the Provincial Minimum Wage (UMP) in Jakarta, the distribution of Holiday Allowances (THR), and support from various government incentives. “Government consumption continued to grow positively at 4.22% (yoy), although not as strong as the previous quarter (8.60% yoy), in line with the still limited realisation of regional spending at the beginning of the year,” Iwan stated. From the external side, exports of goods and services grew high at 8.98% (yoy), an increase from the previous quarter’s 7.62% (yoy), indicating that Jakarta’s trade activity remains stable amid global dynamics. From the business field (LU) side, DKI Jakarta’s economy is mainly supported by the wholesale and retail trade sector, which grew by 6.71% (yoy), an increase from the previous quarter’s 6.66% (yoy). “This positive performance was influenced by increased consumption during the long festive season period,” Iwan revealed. In line with that, the accommodation and food services sector also grew strongly at 10.84% (yoy), an increase from the previous quarter’s 8.40% (yoy). Economic growth was also supported by the information and communication sector, which continued to grow strongly at 6.33% (yoy), reflecting the high demand for digital services, communication, and app-based transactions in Jakarta as a business and services centre. “Going forward, the Bank Indonesia Representative Office for DKI Jakarta Province will continue to strengthen synergy with the DKI Jakarta Provincial Government and related stakeholders to maintain stability and accelerate economic growth amid global economic turbulence,” Iwan added.