TEMPO.CO, Yogyakarta-The Bank Indonesia’s Yogyakarta representative office predicted that Yogyakarta would see a better economic growth this year than that in 2015.
BI Yogyakarta representative office head Arief Budi Santoso forecasted Yogyakarta’s economic growth in 2016 would stand somewhere between 4.9 percent and 5.3 percent.
“Economic challenges will remain, but not as tough as 2015,” Arief said in a press release in Yogyakarta onThursday, March 10, 2016.
In the first quarter of this year, the economy was supported by higher household consumption. Arief revealed that Yogyakarta’s economic growth in 2015 stood at 4.94 percent, decreasing from 5.16 percent in the previous year. In 2015, almost all business sectors in the province experienced a slowdown due to plummeting purchasing power.
However, Arief said that the economic slowdown in 2015 would not occur in 2016. Bank Indonesia was convinced that all main sectors would support the economic growth.
BI Yogyakarta’s economic and finance team chief Sri Fitriani forecasted that the tourism industry would leverage public’s purchasing power.
“The government will also accelerate infrastructure projects that will boost investments,” she added.
The recovering hotel sectors would have impacts on food and handicraft industries. Hotels’ meeting, incentive, conference and exhibition facilities would also stimulate the recovery of food and beverage industries. “The growth in the tourism industry will also boost the processing industry,” Arief added.
Arief revealed that tourism sector’s contribution to gross domestic product accounted for 35 percent. In terms of tourism supporting infrastructures, Yogyakarta still lagged behind Bali. However, Yogyakarta was still one of favorite tourist destinations due to cheaper cost.
“The development of Kulon Progo Airport will also attract investors to Yogyakarta,” he sid.
SHINTA MAHARANI