Jakarta's Economy Growth in 2016 Stable

In the middle of global economic downturn, Jakarta's economy growth along 2016 grew stable. According to Bank Indonesia prediction earlier, Jakarta Regional Gross Domestic Product (PDRB) in 2016 is noted grew 5.85 percent (year on year).

Economic growth in 2016 is not much different from previous year, which is quite stable. In 2016, economic growth reached 5.85 percent, while in 2015 reached 5.89 percent

Jakarta Bank Indonesia Chief Representative, Doni P. Joewono, said that economy growth was driven by improvement in household consumption. It is altogether with manageable purchasing power which sustained by Jakarta's controlled inflation in 2016.

"Economic growth in 2016 is not much different from previous year, which was quite stable. In 2016, economic growth reached 5.85 percent, while in 2015 reached 5.89 percent," he said, Tuesday (2/7).

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According to him, the improvement in national economic which is driven by natural resources producers also sustained economic growth in Jakarta. Beside of that, Non-Public Institution who serves Household (LNPRT) also sustained it. 

"Economic growth can not grow higher than in 2015 because of the weakening central government spending in 2016," he added.

From business sector, increased consumption in capital will boost trading sector growth, information and telecommunications, transportation and warehousing as well as corporate services. Meanwhile, the manufacturing sector in 2016 grew weaker as Jakarta export performance which still experiencing negative growth.

Bank Indonesia expecting economic growth and improvements will continue in 2017. Economic growth will still be supported by household consumption and government investment through the continued development of strategic infrastructure projects and supporting infrastructure projects for the Asian Games in 2018.

"However, need to be aware of world oil prices that started to climb up, because it can led to a rise in fuel prices and other energy commodities in Indonesia. It has the potential to restrain the growth of household consumption," he continued.

He ensured that Jakarta Representative Office of Bank Indonesia will continue to monitor developments, both at the regional, national, and externally, while strengthening the coordination with Jakarta Provincial Government to continue to boost economic growth in Jakarta.