15.38 In realizing Jakarta as a competitive global city, the DKI Jakarta Provincial Government continues to take various steps to increase investment.
“Jakarta still needs to make continuous improvements,”
Through the Dedicated Team Meeting of The Jakarta Investment Committee 2024 initiated by Bank Indonesia, the Regional Secretary (Sekda) of DKI Jakarta province, Marullah Matali hopes that the forum can generate recommendations, ideas, and strategic ideas as input in the formulation of policies and strategic steps to encourage a growing investment climate in Jakarta.
Marullah said, Jakarta plays an important role in the national economy. Recorded in quarter III / 2024, the contribution to Gross Domestic Product (GDP) reached 16.53%. GDP as the main indicator of economic growth reflects the results of all economic activities that take place in it and is used to measure the economic development of a country.
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“Jakarta’s inflation in October 2024 was 1.58% (year on year/yoy), and contributed to national inflation of 20.47% (cost of Living survey of the Central Statistics Agency 2022). Jakarta’s economy in the third quarter of 2024 grew by 4.93% (yoy). Jakarta’s economy mainly consists of tertiary sectors, namely the service sector. While in general, the industrial and construction sectors have decreased, ” he explained at the Langham, South Jakarta, Tuesday (26/11).
Based on BPS Jakarta data for the third quarter of 2024, the main sectors that make up Jakarta’s economy are trade (18.22%), the processing industry (11.56%), and construction (10.98%). Meanwhile, the fastest growing sectors in Jakarta are the trade sector (7.99%), the provision of accommodation and food and drink (7.31%), and transportation and warehousing (7.10%) (yoy).
Marullah also explained that Jakarta’s economic growth could not be separated from the contribution of investment activities. Based on data released by the Ministry of investment/Investment Coordinating Board (BKPM) RI on October 15, 2024, Jakarta’s investment realization in quarter III/2024 amounted to Rp 71.35 trillion, consisting of Foreign Investment (PMA) of Rp 40.77 trillion and domestic investment (PMDN) of Rp 30.58 trillion. Jakarta ranks first nationally by contributing 16.54% to the realization of national investment.
“The achievement of investment realization in quarter III/2024 increased by 40.3% from quarter III/2023 (Rp 50.87 trillion). Cumulatively for the period January-September 2024, the total investment realization amounted to Rp 191.78 trillion, consisting of foreign direct investment of Rp 91.86 trillion and domestic domestic direct investment of Rp 99.92 trillion, with a contribution of 15.20% to the achievement of national investment realization, which places Jakarta in first place,” he explained.
The achievement of investment realization for the January-September 2024 period increased by 47.2% from 2023 (Rp 130.32 trillion) in the same period. The three sectors that had the largest contribution to the realization of investment in the January-September 2024 period were transportation, warehouse, and telecommunications with a value of Rp 72.4 trillion (37.8%); other services Rp 32.17 trillion (16.8%); and trade and repair Rp 26.9 trillion (14.1%).
“These three sectors contributed Rp131.6 trillion or 68.6% of DKI Jakarta’s total investment for the January-September 2024 period. In general, the increase in the value of investment realization, both in foreign direct investment and domestic direct investment cumulatively until quarter III/2024 shows that foreign investor confidence has increased again in central and local government policies, as well as economic and political stability in the midst of national and world political conditions,” he said.
Marullah continued, in accordance with Law No. 2 of 2024 concerning the Jakarta Special Region province, to encourage the transformation of a global city and the center of the national economy, Jakarta is expected to make a significant contribution to the economy and encourage increased investment.
“Based on the Global City Index (GCI) in 2023, Jakarta is ranked 74 out of 156 cities in the world. Jakarta still needs to make continuous improvements in infrastructure, environmental management, inclusive economic development, and improving safety and quality of life to be on par with other global cities,” he said.
Furthermore, to get to a competitive global city, it is necessary to create a modern and sustainable infrastructure, such as the development of mass transport systems, the development of new renewable energies, the reduction of emissions and air pollution, and waste treatment.
To realize the vision of ‘an advanced, equitable, competitive and Sustainable Global City’, the DKI Jakarta Provincial Government encourages the financial services sector, trade, high-tech and high value-added industries, and information and Communication Technology. In addition, it also developed the potential of Green Economy and Blue Economy.
The DKI Jakarta Provincial Government also seeks to improve investment performance by preparing the Provincial General Investment Plan (RUPMP) 2025-2045 as a policy to provide legal certainty in conducting investment activities in DKI Jakarta. In addition, a map of Provincial Investment Potential was also prepared, as well as local regulations related to the provision of incentives and ease of investing.