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Economy grows despite financial crisis
Although the city's gross regional product (GRP) continued to grow in the third quarter, Jakarta should maintain economic growth over the last quarter to reach this year's target, Jakarta Statistics Agency reported Monday
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Although the city's gross regional product (GRP) continued to grow in the third quarter, Jakarta should maintain economic growth over the last quarter to reach this year's target, Jakarta Statistics Agency reported Monday.
Djamal, the agency's head, said Jakarta experienced a growth of 6.15 percent in the third quarter compared to the same period last year.
"Almost every field showed significant growth with the transportation and communication sector leading with 14.80 percent, followed by construction (7.79 percent), and the electricity, gas and clean water sector (7.28 percent)," Djamal said.
The city's year-on-year growth was recorded at 6.19 percent. The administration has set a target of 6.2 percent growth for 2008.
Dody Rudyanto, the agency's head of the regional balance report and statistical analysis, said that despite the growth, the city should maintain economic growth at between 6.22 and 6.24 percent in the last quarter to reach its 2008 target.
This year, over the third quarter, the Jakarta economy generated Rp 17.4 trillion, with the biggest expenditure components being household consumption at 55.58 percent and investment at 35.50 percent, with net exports only contributing 0.34 percent.
"We are optimistic about reaching the target so long as the global crisis does not have a stronger impact," Djamal said.
Furthermore, he said banks, which fortunately were not collapsing, were the reason for sustained economic growth.
"People trust banks. There has been no rush to withdraw savings," he said.
However, total exports until September this year slumped to Rp 60.6 trillion from the Rp 61.1 trillion that was recorded in September last year.
"The decrease was the result of the global financial crisis, which led to the slowing down of demand in the international market," Dody said.
Exports have declined since May 2008, when exports to America, Australia and Africa dropped from 22.06 percent to 16.82 percent, 7.03 percent to 5.26 percent and 5.14 percent to 5.10 percent, respectively.
