High Inflation Rate, City Poverty Increases

Partly influenced by fuel (BBM) increase in July last year, Jakarta’s 2013 inflation rate increased sharply to 8 percent. Unfortunately, the inflation rate also affects to the amount of the poor in the capital city.

This (high inflation rate) was partly caused by the policy of fuel price increase in July 2013

Jakarta Governor Joko Widodo (Jokowi) admitted that Jakarta’s 2013 inflation rate was 8 percent, higher than in 2012 which only 4.52 percent. However, this number is still lower than national inflation rate of 8.38 percent.

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“This (high inflation rate) was partly caused by the policy of fuel price increase in July 2013,” stated Jokowi when delivering Jakarta Province Governor 2013 Responsibility Report (LPJ) in Jakarta Parliament (DPRD) plenary meeting, Monday (4/21).

In line with inflation rate growth, poverty in Jakarta also rises from Rp 392,571 per capita per month in 2012 to Rp 434,322 per capita per month in 2013. As a result, the amount of the poor in Jakarta in September 2013 became 375.70 thousand people. In September 2012, the amount was 366.77 thousand people.

According to Jokowi, the amount of the poor in terms of macro is influenced by poverty line that defined as the rupiah needed to fulfill the needs at least for foods and non foods, which is monthly average expense per capita. Nevertheless, the 2013 Human Development Index (IPM) showed increase from 78.00 in 2012 to 78.33 in 2013, which was higher than average national IPM of 73.29.

“The performance of human development in Jakarta shows significant increase. IPM is the indicator that can explain citizens’ opportunity to access services, especially in health and education sectors as well as increase in income,” he uttered.

In total, economic growth in 2013 of 6.11 percent was a bit slower than 2012 of 6.53 percent. Such a thing was based on Gross Regional Domestic Products (PDRB) from valid prices in Jakarta in 2013 that reached Rp 1,255.9 trillion, while in 2012 it was only Rp 1,103.7 trillion. That means, there was increase for Rp 152.23 trillion or 13.79 percent.

Meanwhile, PDRB in Jakarta based on valid prices in 2013 reached Rp 126.12 million or increased for 12.7 percent compared to 2012 which was only Rp 111.91 million. If observed from the amount of Jakarta PDRB in 2013 based on constant price, the number reached Rp 477.3 trillion, increased to Rp 27.5 trillion, from Rp 449.8 trillion in 2012.