Jakarta's Economy Will Grow Higher Approaching the End of the Year

Jakarta Branch Bank Indonesia (BI) Representative Office Head, Iwan Setiawan, stated that Jakarta's economy is potentially poised to grow higher approaching the end of 2025.

This is influenced by the decline in public consumption

It is noted that entering the third quarter of 2025, the capital city's economy grew by 4.96 percent (year-on-year). He assessed, the slowdown in growth in the third quarter is a seasonal pattern that typically occurs every year.

"This is influenced by the decline in public consumption after the end of National Religious Holidays (HBKN), normalization of mobility after school holidays, and the lack of national public holidays," he expressed, during the Bincang Bareng Media (BBM) activity, Friday (11/7).

Jakarta Strengthens Creative Economy Through Coffee Industry

According to him, the demonstration event at the end of August also pressured public consumption and delayed business expansion. As a result, household consumption grew only 5.01 percent (year-on-year), slowing from the previous quarter's 5.18 percent.

Meanwhile, investment grew by 3.67 percent (year-on-year), also slowing down from 5.50 percent. Nevertheless, the Jakarta government's quick actions, such as improving public facilities, waiving Transjakarta services, increasing social assistance, and holding major events, managed to prevent further economic slowdown.

Government consumption became the main driver of growth, reaching 20.06 percent (year-on-year), a sharp increase compared to the previous quarter's 5.16 percent. This increase was triggered by the reopening of budget blocks by the central government, leading to a significant rise in spending on goods, subsidies, and social assistance.

From the business sector perspective, Jakarta's economic growth is supported by the service sector such as information and communication, trade, and corporate services. These sectors are growing alongside increased internet usage, umrah travel agency activities, and the proliferation of MICE events and activities in Jakarta.

Iwan is also optimistic that Jakarta's economy will strengthen in the fourth quarter of 2025. This is due to the numerous major events such as concerts and sports, accelerated government spending, and ongoing infrastructure projects.

"Household consumption is also expected to increase in line with the Christmas and New Year momentum, as well as growing consumer optimism about the economy," he explained.

Bank Indonesia estimates that Jakarta's economic growth by the end of 2025 will be in the range of 4.6 to 5.4 percent (year-on-year).

"The synergy between the Jakarta government, Bank Indonesia, and all stakeholders in TPID will continue to be strengthened through the 4K strategy, namely Supply Availability, Price Affordability, Distribution Smoothness, and Effective Communication. With this, Jakarta's inflation is expected to remain stable at around 2.5 ±1 percent (year-on-year)," he stated.