Jakarta's Economy Remains Strong, Jakarta BI Representative Office Says

Jakarta economy grew by 5.01 percent (yoy) in the fourth quarter of 2024, 4.93 percent (yoy) bigger compared to the previous quarter. The growth was mainly supported by Household Consumption that grew positively by 5.14 percent (yoy), also supported by Christmas and New Year moments and various MICE events, even though it was slightly lower compared to the third quarter.

Synergy with the Jakarta Provincial Government

The investment increased to 7.54 percent (yoy) in line with multi-year strategic government and private projects. Exports also grew to 14.66 percent (yoy), mainly supported by exports of automotive, clothing, accessories, chemical products, precious metals, and jewelry.

The government consumption slowed to 5.20 percent (yoy) due to front-loading spending of election in the early year.

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"Non-Profit Institution Household (LNPRT) consumption also grew lower at 6.84 percent (yoy), in line with the end of Regional Election campaign period in the middle of the fourth quarter," said Arlyana Abubakar, Jakarta Bank Indonesia Representative Office Head, Monday (2/10).

From the Business Field (LU), he added, Trade LU recorded a growth of 7.26 percent (yoy), supported by community activities during Christmas and New Year moments. Construction LU also grew to 9.39 percent (yoy), in line with the investment increase.

The Infocom LU went up 4.36 percent (yoy), thanks to high data and internet usage at the end of the year. Manufacturing Industry LU grew 1.35 percent (yoy) or slightly bigger compared to previous quarter along with the improvements in automotive exports and domestic demand.

"Financial Service LU slowed to 2.60 percent (yoy), in line with the credit distribution decline," he added.

Overall, he continued, Jakarta economy in 2024 grew by 4.90 percent (ctc), slightly lower compared to 2023 (4.96 percent; ctc) and below the national average (5.03 percent; ctc).

According to him, growth along the year was supported by Household Consumption, Investment, and Exports, with support from main business fields such as Trade, Construction, Infocom, and the Manufacturing Industry.

"Jakarta's economy in the first quarter of 2025 is expected to continue to grow strong, as indicated by Bank Indonesia's consumer survey and business activity survey (SKDU) result that remain positive," he continued.

It is also supported by the Consumer Confidence Index (CCI), from the demand side, for the next six months with an index value of 141.1. The value is bigger compared to previous quarter (139.8), thanks to better expectation of future job availability and business development increase.

There are 23 international music events and eight sport events held in Jakarta in the first quarter of 2025 that will further drive the Household consumption.

From the Business Field (LU) side, strong growth will be led by LU of Trade, Construction, Financial Services, and Corporate Services along with business actor confidence increase that is reflected in the forecast increase of the Weighted Net Balance (WNB) of SKDU for the four LUs.

He stated Jakarta's economy in the first quarter of 2025 boost is also supported by teh continued construction of multi-year government projects such as MRT and LRT, the construction of the 2025 PSN project in Jakarta, and other projects.

The growth will also be supported by loose macroprudential policies to encourage credit distribution such as KLM, RIM, and LTV.

"Government also implemented several policies such as KUR, FLPP KPR and tax incentives that encourage the property and motor vehicle credit distribution," he stated.

Digitalization in Jakarta continues to grow as it is reflected in QRIS transaction volume that grew by 167 percent yoy with Jakarta's QRIS Volume share to the national figure reaches 32 percent.

"Jakarta Provincial Government becomes more digital as it is reflected in Jakarta regional government transaction electronification index (ETPD) that already grew in Semester II 2024 by 99.8 percent (scale 100 percent)," he said.

Jakarta Bank Indonesia Representative Office will continue to monitor various economic indicators development at the regional, national and global levels.

"Synergy with the Jakarta Provincial Government will be continued to be strengthened in maintaining the momentum of Jakarta's economic growth in various sectors in order to achieve high, inclusive and sustainable economic growth, and to realize Jakarta as a competitive global city," he stated.