JAKARTA (10/5) – Jakarta’s economy shows a positive growth reaching up to 4.63 percent in the first quarter of 2022, compared to the same period in the previous year (yoy) aligning with an improvement in household consumption.
“After recorded a contraction of 1.94 percent in the first quarter of 2021, Jakarta’s economy grew 4.63 percent in Q1 2022 (yoy), this number shows a higher growth from the previous quarter which is 3.64 percent (yoy),” the Deputy Head of Bank Indonesia Representative Office DKI Jakarta Endang Kurnia Saputra said in Jakarta, Tuesday (10/5).
He added that this economic growth is supported by the increase from household consumption and gross fixed capital formation (GFCF/PMTB).
Bank Indonesia DKI Jakarta Economist Muhammad Shiroth explains that household consumption grew 4.20 percent (yoy) in the first quarter of 2022, higher than the previous quarter which was 3.65 percent (yoy).
“An increase in the household consumption is also shown by the surge of car sales in Jakarta which reached up to 41.1 percent (yoy), along with the issuance of luxury tax (PPnBM) incentive and public behavior in car purchasing ahead of Idul Fitri,” he added.
Meanwhile, GFCF/PMTB components in Jakarta rose 4.20 percent (yoy) in the first quarter of 2022 in line with an increase in the import of capital goods which recorded a realization growth up to 8.1 percent (yoy) as of February 2022.
“From the building investment aspect, the construction sector performance grew positively along with several national strategic projects that are being executed in Jakarta that also supports the GFCF growth. Meanwhile, investment from non-building is also estimated to rise along with the improvement of business performance,” he said.
In terms of export, the number grew up to 8.24 percent (yoy) in the first quarter of 2022 that was indicated by a positive growth in the Completely Built Up (CBU) car exports as well as heavy equipment and spare parts export abroad.
Furthermore, service export was starting to improve, indicated by a significant increase in the number of foreign tourists that reached 52.815 visitors or rose up to 203.3 percent (yoy).
These improvements of household consumption and GFCF components, Endang continues, are affected positively by the ease of extended public activity restriction (PPKM) and supported by the vaccination rate in the first quarter of 2022 which has boosted public mobility of Jakarta’s citizens.
“All of these improvements are inseparable from the ease of quarantine policy for foreign visitors to Indonesia,” he said.
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