TEMPO.CO, Jakarta - The Jakarta Branch of Bank Indonesia (BI) revealed that the Capital’s economic growth in the first quarter of 2016 stood at 5.62 percent, which was lower than in the fourth quarter of 2015.
“Jakarta’s year-on-year economic growth in the first quarter of 2016 stood at 5.62 percent, which was lower than in the previous quarter t 6.48 percent, and it was below BI’s expectation,” Doni P. Joewono, head of the Jakarta branch of Bank Indonesia, said in a press release on Thursday, May 5, 2016.
According to Doni, the optimism with the household consumption growth in the first quarter of 2016 was not supported with improved government’s spending and export performance. The two components, Doni added, had lower growths causing the Capital’s economy to grow slower than in the previous quarter.
However, the realization of the economic growth is higher than in the same period of last year at 5.54 percent. Global economic slowdown still has an impact on Jakarta’s export performance.
House hold consumption continues to show improvement as the public purchasing power increases.
“This is caused by the increased minimum wage and the declining commodity prices due to fuel and power prices adjustments,” Doni added.
Doni explained that the increasing household consumptions was also reflected by the increasing car sales, rising consumption goods imports and trading activities.
The economic growth is expected to improve in the second quarter of 2016 following introductions of economic policy packages. In addition, Jakarta Budget absorption and State Budget absorption are expected to be better in the second quarter.
“The Jakarta Branch of Bank Indonesia will continue to monitor developments at the regional, national and external levels, while strengthening coordination with the Jakarta administration to boost the Capital’s economic growth,” Doni said.
ANTARA
