DKI Provincial Government Disburses Jakarta Factors Can Escape From Middle Income Trap

Illustration-(Photo: DOK ANTARA)

JAKARTA - DKI Jakarta is one of the provinces that officially escapes the middle income trap. Assistant for the Economy and Finance of the DKI Jakarta Provincial Secretary, Sri Haryati explained the factors that made Jakarta able to escape the middle class income trap. Sri said that the biggest contribution that made Jakarta leave the middle income trap was the business field sector that produces service products or tertiary sectors. Based on data on Jakarta's economic structure in the first quarter of 2024, the primary sector contributed 0.25 percent, the secondary sector contributed 22.56 percent and the tertiary sector contributed 77.19 percent. "The tertiary sector that contributed the most was a large trading business field with a contribution of 17.91 percent, followed by the financial services industry at 11.17 percent and infokom at 9.34 percent," Sri said, Wednesday, July 31. Then, the secondary sector was supported by the processing industry with a contribution of 11.63 percent and construction of 10.74 percent. Sri said that the high contribution of the tertiary sector in Jakarta could be realized because the DKI Provincial Government has made the licensing process easier and organized the Jakarta Investment Forum as an annual event to attract investors to invest. "This step was carried out as an effort to help Jakarta get out of the middle income trap," he said. Coordinating Minister for Economic Affairs Airlangga Hartarto said a number of areas in Indonesia had escaped the middle-income trap, such as Jakarta, which is already equivalent to Singapore. Airlangga claimed that Jakarta's position was equivalent to Singapore because Jakarta's per capita income reached 21,000 US dollars or equivalent to Rp. 341 million per capita (exchange rate of Rp. 16,265).

"Jakarta has passed the middle income trap, Jakarta has per capita income of 21,000 US dollars. If we want to enter again to the top of Jakarta, namely Central Jakarta, it has reached 50,000 US dollars, so Jakarta's agglomeration is equivalent to other countries including Singapore," said Airlangga in the Anniversary Celebration of the Coordinating Ministry for Economic Affairs, Thursday, July 25.