In Terms of Economy, How Big is Jakarta's Influence on Indonesia?

TheIndonesia.id - Bank Indonesia (BI) Governor Perry Warjiyo opined that the national capital, Jakarta, is the epicenter of Indonesia's economy, as the province plays a major role in the nation's economic development.

"I believe if Jakarta grows, then Indonesia also grows. Hence, economic measures in Jakarta will have a great impact on the national economy," Warjiyo stated during a webinar hosted by Jakarta's Indonesian Economist Association on Friday, December 24, 2021.

Jakarta must boost digitization, financial inclusion, and the manufacturing industry that contribute significantly to economic development, he affirmed. "Major markets in Jakarta, such as the Tanah Abang market, are the main source of economic inclusion. Apart from hosting economic activities, markets also play a role in boosting the regional economy," Warjiyo affirmed.

Jakartans' household consumption has boosted regional output in the Java region by 21 percent; Bali and Nusa Tenggara regions, seven percent; Kalimantan region, six percent; Sumatra region, five percent; and Sulawesi and Papua regions, four percent; thereby proving the province's significant role in the national economy, he pointed out.

In the financial sector, Jakartans holds 29 percent of the outstanding credit from the total national credit value, 49 percent of the total national deposit value, and 40 percent of the total Rp7.361 trillion (around US$515 million) of the national cashless transaction value, the central bank governor noted.

Warjiyo also urged the Jakarta authority to expedite measures to achieve herd immunity and procure booster vaccine doses to boost economic recovery amid the COVID-19 pandemic in the province.

BI is confident of Jakarta's economy growing by 3.5-4.3 percent in 2021 and 5.3-6.1 percent by 2022, consistent with the recent positive trend of economic recovery, he stated. "The essence is that Jakarta will become the epicenter that will boost Indonesia's economy," Warjiyo remarked.