Tuesday, 17th October 2017

Jakarta`s economy slows down in second quarter

8th August 2017 | 4.676 Views
Jakarta (ANTARA News) - Head of the Jakarta representative office of Bank Indonesia Doni P. Joewono said the economic growth of the province of Jakarta city slowed down in the second quarter of this year compared with the previous quarter.

The economy of the capital city grew only 5.96 percent year-on-year in the April-June period down from 6.45 percent yoy in the previous three months, Doni said, here on Tuesday.

The growth fell below the previous estimate of the Central Bank, he said , attributing slowdown to weak exports and imports and government spending.

Despite the slowdown, the citys economic growth of 6.2 percent in the first half of the year was still higher than 5.89 percent yoy.

The less than expected export performance of the capital city was as a result of the weak demand in the global market for its main export commodities such as motor vehicles and ornaments.

In the second quarter of 2017 Jakarta exports shrank 13.69 percent yoy, after a contraction of 5.84 percent in the previous quarter.

The government policy especially the regulation of the land transport directorate general prohibiting transport of export and import goods via toll roads during the Ied ul Fitri days from June 21 to 29 contributed to the fall in exports and imports.

"The policy caused a decline in flows of goods to and from ports," Doni said.

A decline in government spending in Jakarta also contributed to the citys economic slowdown, he added.

Bank Indonesia, however, predicted the increase in the countrys economic growth in the first half of 2017 would continue in the rest of the year as the government spending is expected to grow driven by rise in employees spending.

In addition the rising trend in investment is expected to continue with more infrastructure projects of the government to be implemented .

Exports and imports are also expected to increase with the improving condition of the global economy and as all roads including toll road would be open for the transport of export and import goods.(*)