Contraction Of 8.22 Percent In Second Quarter, Jakarta Capital City Condition Affects National Economic Growth

JAKARTA - The Coordinating Minister for Economic Affairs (Menko Perkonomi) Airlangga Hartarto said that economic growth in DKI Jakarta in the second quarter of 2020 was under pressure to minus 8.22 percent.

Jakarta Capital City's contraction was the second lowest after Bali, which contracted by minus 10 percent. According to Airlangga, this quite high contraction was due to the fact that Jakarta was included in the 10 largest contributor to gross domestic product (GDP).

In addition, Jakarta has high realization and has a profound impact on economic activity. "DKI also has a large national impact, most of the economic activities have a head office in DKI Jakarta," he said, during the 'Virtual 100 Economist Workshop', Tuesday, September 15.

Apart from DKI Jakarta, several other provinces also experienced a decline in economic growth. For example, in East Java whose growth is minus 5.9 percent, West Java minus 5.8 percent, Central Java minus 5.94 percent, East Kalimantan minus 5.46 percent and Banten minus 7.4 percent.

Meanwhile, said Airlangga, there were several provinces whose economic growth contraction was not too deep, namely North Sumatra minus 2.37 percent, Riau minus 3.22 percent, South Sulawesi minus 3.87 percent and South Sumatra minus 1.37 percent.

"Some of these areas are supported by the agricultural or plantation sectors. So we can see that agriculture and plantations are not affected by the pandemic," he said.

In addition, Airlangga said, there is a mining and excavation sector that can be a powerhouse of the national economy. Especially in nickel mining in Sulawesi and the processing, construction and trading industries. These five sectors can still support Indonesia's economic growth.

"Five sectors that can leverage the national economy," he said.