Economy of Jakarta Predicted to Increase this Year

Jakarta's Bank Indonesia Representative Office predicts Jakarta's economy to increase between 4.80 percent to 5.60 percent (yoy) for the rest of 2024, from 4.96 percent in 2023.

Jakarta's economy will still grow high

This prospect is also supported by high credit growth of 13 to 15 percent. From the demand side, household consumption (RT) and investment are expected to continue to drive Jakarta's economy in 2024.

Jakarta's Bank Indonesia Representative Office Head, Arlyana Abubakar, said the increase in household consumption is supported by strong consumer confidence, the rise of MICE and events, as well as the holding of elections.

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"Meanwhile, investment is supported by the continuation of strategic projects, especially those that are multi-year projects," he said, Friday (5/17).

He added that in terms of the business sector, the increasing growth prospects are supported by the growing Business Fields of trade, financial services, infocom and the processing industry.

Nevertheless, he continued, several risks that need to be watched out for throughout 2024 include a global economic slowdown, widespread geopolitical tensions and the Fed's interest rates being held high.

Arlyana explained that Jakarta needs to continue to maintain the momentum of economic growth and controlled inflation. The challenges currently being faced are primarily global in the form of stifled global economic growth, expanding geopolitical tensions and the FED's policy of maintaining a strict FFR policy longer (higher for longer).

"From the national side, there are challenges related to weather anomalies, agricultural structural challenges and the HBKN moment and political year," he added.

He continued, from the Jakarta side, there are challenges and issues, namely, as a non-producing area, the integration of the Jabodetabekpunjur agglomeration, the transfer of IKN and the status of DK Jakarta as well as changes to the 2022 SBH.

"Despite these various challenges, Jakarta's economy will still grow high in the range of 4.8 to 5.6 percent and inflation will be under control within a lower target of 2.5 ± 1 percent in 2024. This cannot be separated from the policy synergy between BI and the Central-Regional Governments," he closed.