Jakarta Contributes 16.67 Percent to National Economy, Largest in Indonesia

The Jakarta Representative Office of Bank Indonesia (KPw BI) states that Jakarta’s economy contributes 16.67 percent to the national economy. Thus, Jakarta maintains its role as Indonesia’s largest economic centre. “In the first quarter of 2026, Jakarta’s economy continued to grow strongly at 5.59 percent (year-on-year), in line with the national economic growth recorded at 5.61 percent (year-on-year),” said the Head of KPw BI DKI Jakarta, Iwan Setiawan, in Jakarta on Wednesday (6/5/2026). “From the demand side, household consumption grew by 5.72 percent (year-on-year), an increase from the previous quarter’s 5.51 percent (year-on-year),” Iwan stated. This increase in household consumption was driven by rising public spending. This aligns with the long festive season period of National Religious Holidays (HBKN) including Ramadan and Eid al-Fitr, Chinese New Year, and Nyepi, as well as support from the organisation of various major events. Additionally, public purchasing power remained stable in line with the increase in Jakarta’s Provincial Minimum Wage (UMP), the distribution of Holiday Allowances (THR), and support from various government incentives. Meanwhile, investment or Gross Fixed Capital Formation (PMTB) also continued to grow positively at 4.71 percent (year-on-year), supported by the continuity of multi-year strategic government and private projects. “Government consumption continued to grow positively at 4.22 percent (year-on-year), although not as strong as the previous quarter (8.60 percent year-on-year), in line with the still limited realisation of regional spending at the beginning of the year,” Iwan explained. From the business field (LU) perspective, DKI Jakarta’s economy was primarily supported by the wholesale and retail trade sector, which grew by 6.71 percent (year-on-year), an increase from the previous quarter’s 6.66 percent (year-on-year). In line with this, the accommodation and food and beverage provision sector also grew strongly at 10.84 percent (year-on-year), an increase from the previous quarter’s 8.40 percent (year-on-year). Economic growth was also supported by the information and communication sector, which continued to grow strongly at 6.33 percent (year-on-year), 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 fluctuations,” Iwan said.