BI Jakarta Optimistic About Stronger Economic Growth in Q4 2026

Collaboration between Bank Indonesia (BI) Jakarta Representative Office and the Jakarta Provincial Government through the Regional Inflation Control Team (TPID) has been key to maintaining price stability in the capital.

Inflation remaining under control

The collaboration focuses on strengthening food supplies, ensuring smooth distribution, improving public communication, and implementing various strategic programs to maintain residents' purchasing power.

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BI Jakarta Head Iwan Setiawan said Jakarta had an advantage in controlling inflation thanks to its relatively well-developed food infrastructure and established governance.

Although Jakarta is not a major food production center, he noted, it has to ensure adequate food supplies for around 12 million residents.

He pointed to three city-owned enterprises (BUMDs) in the food sector: Food Station, Perumda Dharma Jaya, and Perumda Pasar Jaya. These companies play an important role in maintaining food supply chains and supporting the distribution of key commodities.

"Although Jakarta is not a major food production center, it has an advantage in controlling inflation because of its established system and mature infrastructure, including the three BUMDs," he said on Monday (11/9).

Iwan also highlighted the importance of public communication in controlling inflation, alongside efforts to maintain adequate food supplies. He noted that clear and consistent information was particularly important in a dynamic city like Jakarta, where public expectations could also influence inflation.

"That is why information about price movements and the availability of goods needs to be communicated consistently through both conventional and digital channels," he added.

He also credited the strong coordination within Jakarta TPID for supporting the city's inflation control efforts. Clear leadership, a shared vision, and commitment from all stakeholders have helped strengthen collaboration, including at the technical level. The team reviews price developments every Thursday to keep track of market conditions.

"Supply, distribution, and communication are key. Inflation in Indonesia is not purely a monetary phenomenon; supply-side factors also play a significant role. That is why distribution is so important. I believe these factors have helped Jakarta maintain its leading position in inflation control," he said.

In practice, BI and the Jakarta Provincial Government work together through the TPID by implementing the 4K strategy: maintaining affordable prices, ensuring supply availability, facilitating smooth distribution, and strengthening effective communication.

Measures include expanding low-cost market operations and distributing subsidized food supplies, strengthening interregional cooperation to secure food supplies, and facilitating distribution by providing support for food transportation.

Coordination is also strengthened through high-level meetings, capacity-building programs for the TPID, and public education on smart shopping practices. Other supporting initiatives include the 2026 Processed Food Festival and the use of public communication channels. These efforts complement central government policies to maintain price stability and anticipate inflation risks.

Meanwhile, BI Jakarta is optimistic that the capital's economy will perform better in the fourth quarter of 2026, potentially bringing full-year growth above the level recorded in 2025.

This outlook is supported by investment, domestic consumption, various incentives from the central and regional governments, and the organization of Meeting, Incentive, Convention, and Exhibition (MICE) events toward the end of the year.

Iwan added that various government programs and incentives already introduced, including discounts and a series of year-end events, were expected to boost public mobility, consumption, and purchasing power.

"Inflation remaining under control will also support economic activity in Jakarta through the end of 2026. With continued efforts by BI and the Jakarta Provincial Government to strengthen their synergy, price stability is expected to be maintained while supporting sustainable economic growth," he noted.