Bank Indonesia: West Java Economic Growth of 5.45 Percent in 2022 due to Investment Realization of IDR 174.58 Trillion

Illustration. (Photo: Doc. Antara)

JAKARTA - Bank Indonesia assesses the factor causing economic growth in West Java Province, which will reach 5.45 per cent year-on-year (YoY) in 2022, namely the ability to maintain investment performance.

"And this is an important matter, West Java's investment realization in 2022 was recorded at IDR 174.58 trillion. The achievement of this investment realization has reached 103.14 per cent or exceeded the national target which was recorded at IDR 169.27 trillion, this was unexpected", said Deputy Head West Java Bank Indonesia Representative, Bambang Pramono, quoted from Antara, Tuesday, February 7.

According to Bambang, his party noted that under the leadership of Governor Ridwan Kamil M of West Java Province was able to record steady economic growth.

Based on data from the Central Statistics Agency (BPS) the economy of West Java in 2022 will experience significant improvement and growth compared to 2021.

At a time when the geopolitical situation disrupted the global economy as well as an increase in fuel prices, West Java's economic growth rate (LPE) in 2022 grew significantly to reach 5.45 per cent YoY, higher than the previous year which was 3.74 per cent.

West Java's economy had slumped to an LPE rate of minus 2.52 per cent in 2021 due to the COVID-19 pandemic but has started to recover as the COVID-19 case has been controlled. In fact, the 2022 LPE was almost close to the West Java LPE during Ridwan Kamil's early 2018 leadership at 5.65 per cent and surpassed the 2019 LPE at 5.02 per cent.

BPS reported that this was achieved in line with improving the handling of the pandemic, opening the implementation of the pilgrimage, provisions for Eid homecoming, face-to-face learning and tourist attractions so that people's mobility gradually returns to normal.

In addition, economic growth is also supported by maintained exports and investment realization amid global uncertainty.

According to Bambang, the 5.45 per cent figure is the highest economic growth in Java.

"Even higher than the national economy which grew 5.31 per cent (year on year)", he said.

Bambang assessed that Governor Ridwan Kamil's commitment to investment can be seen from his efforts to collaborate with all stakeholders including Bank Indonesia to continue to boost investment promotion since the COVID-19 pandemic. Even when the global economic situation is uncertain.

"So the promotion effort is equipped with a mapping of investment potential accompanied by a climate of ease of doing business in West Java, the policy is also supported by stakeholders, project owners who provide investment commitments that are ready to be offered", he said.

"In terms of human resources, West Java is also supported by high and quality human resources, as well as infrastructure that is far more prepared than other provinces", he continued.

Bambang said that in line with the achievement of West Java's economic growth, welfare conditions indicated by the poverty rate also showed improvement.

In September 2022, the number of poor people was recorded at 4.05 million people, a decrease from 4.07 million people in March 2022.

In percentage terms, the poor population decreased to 7.98 per cent in September 2022 from the previously recorded 8.06 per cent in March 2022.

This performance is better than the national poverty percentage which increased from 9.54 per cent in March 2022 to 9.57 per cent.

This reduction in the poverty rate is the result of economic recovery performance supported by the increasing role of the MSE and labour subsidy assistance which has been intensively provided throughout 2022.