JIF 2024 Expected to Boost Jakarta's Economic Growth

Acting Jakarta Governor, Heru Budi Hartono, attended and launched the Jakarta Investment Festival (JIF) 2024, at St. Regis, Kuningan, South Jakarta, Friday (9/6).

Jakarta to continue to grow

Heru said that JIF 2024 becomes important moment for Jakarta Provincial Government in attracting investors to invest in Jakarta. It is hoped the JIF 2024 implementation to increase the economic growth of Jakarta which is developing into a global city.

"JIF 2024 is a moment for Jakarta Provincial Government to attract investors. We have to increase investment both in tourism and UMKM for Jakarta to continue to grow," Heru said, a quoted from Jakarta Provincial Government's press release.

JITEX 2024 Reaches Rp 12.86 T of Transaction and Investment Targets

Heru added that Jakarta has played an important role as the center of national economic so far. There was a positive growth of 4.9 percent in the second quarter of 2024 compared to the same period in previous year and grew 1.38 percent compared to the first quarter of 2024.

"We were able to keep inflation rate below previous years in two years. We would also like to thank investors who still trust Jakarta for investing," Heru added.

Heru continued the cumulative investment realization amount of Foreign Investment and Domestic Investment in Jakarta in the second quarter of 2024 was Rp 62 trillion or 14.5 percent of the National Direct Investment achievement. Jakarta's contribution to the Indonesian economy reached 16.54 percent following the ratification of Law No 2/2024 about the Special Region of Jakarta Province.

"Jakarta will relinquish its status as the nation's capital. Therefore Jakarta remains committed to strengthen its global city role as the center of economic growth in the Southeast Asian region in the next 20 years," Heru continued.

In order to realize this, Heru stated, Jakarta needs infrastructure development that requires budget Rp 600 trillion. In fact, the fiscal capacity of Jakarta is only Rp trillion to Rp 84 trillion per year. Therefore, investment from within and outside the country is needed to finance development in Jakarta. Jakarta Provincial Government invites investors through JIF 2024 to come and explore various potential projects managed by Jakarta Regional-Owned Enterprises (BUMD) and Regional Public Service Agencies (BLUD).

"Jakarta only has a budget around Rp 84 trillion to manage a city with its complexity and has complete infrastructure. Therefore we need policy support from the Minister of Investment so that Jakarta can continue to grow, help its people grow into a global city. One of the ways is through Jakarta Investment Festival 2024," Heru said.

Meanwhile, Minister of Investment/Head of the Investment Coordinating Board (BKPM), Rosan Perkasa Roeslani, appreciated the JIF 2024 held by Jakarta Provincial Government. He hopes similar event can be held routinely every year. Regional government must play an active role in approaching investors.

"Jakarta Provincial Government is doing this consistently. Highest investment destination in Indonesia is still in Jakarta," Rosan said.

Jakarta Investment and One-Stop Integrated Service (PM-PTSP) Head, Benni Aguscandra, stated JIF 2024 is a series of Annual Investment Business Forum initiated by Jakarta Provincial Government to inform the public and promote the city as in investment-friendly city. As the fourth implementation, this year JIF is aimed to open and explore investment interest and potential investors for various investment opportunities.

"JIF 2024 carries theme 'Global City Notion for a Golden Nation' to inform the public about Jakarta Provincial Government commitment and effort in realizing Jakarta as a global city, by strengthening Jakarta's role as a global business and economic center after the relocation of the capital city. This program is also our effort in supporting the vision of Indonesia Emas 2045 as a national vision from an economic aspect," he explained.

Benni added that the Ministry of Investment/BKPM is targeting investment Rp 198 trillion in Jakarta this year. Investment realization has reached Rp 120 trillion in the second quarter. Benni is optimistic that the target will be exceeded by the end of the year since 35 potential projects owned by Jakarta are being promoted in JIF 2024. Those projects are managed by eight BUMDs and one BLUD in several sectors such as property, infrastructure, clean water supply and wastewater management.