Jakarta Economy Grows, Household Consumption and Government Incentives Support

Jakarta's economy grew by 4.95 percent (year-on-year) in the first quarter of 2025, surpassing the national growth rate of 4.87 percent.

This is reflected in the increase in household electricity consumption

This growth is supported by significantly increased household consumption during the National Religious Holidays (HBKN) and Ramadan 2025, as well as the distribution of various incentives by the government during that period.

Jakarta Branch Bank Indonesia Office Head, Arlyana Abubakar said household consumption grew by 5.36 percent (year-on-year), an increase from the previous quarter's achievement (5.14 percent; year-on-year).

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"Various incentives such as electricity tariff discounts, food assistance, and tax incentives play a significant role in boosting the purchasing power of the people in Jakarta. This is reflected in the increase in household electricity consumption and the strengthening of the consumer confidence index," he explained, Thursday (5/8).

He added this increase is also supported by various factors, such as consumer optimism, rising household electricity consumption, and the organization of various major events in Jakarta.

"The optimism of Jakarta's residents is reflected in the strengthening of Consumer Confidence Index (CCI), Consumer Expectations Index (CEI), and Current Economic Conditions Index (CECI), all of which are in the optimistic zone. This is a positive signal for the regional economy," he explained.

On the sectoral side, Jakarta's economic growth is also driven by the information and communication sector, wholesale and retail trade, and financial services. According to him, Jakarta's economic structure is still dominated by the service sector, which consistently increases its proportion.

"The economic structure of Jakarta remains dominated by the service sector, which continues to show an increase in its share," he added.

Then the number of national and international events held in Jakarta have also positively impacted consumption, including Maroon 5 Asia Tour 2025 concert, Chinatown Festival, Indonesia International Motor Show (IIMS) 2025, INACRAFT 2025, and Jakarta Lebaran Fair 2025.

"Collaboration among various parties, including local governments and business actors, needs to be continuously strengthened to maintain the momentum of growth and support inclusive and sustainable economic recovery," he stated.