TheJakartaPost
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City expects economic slowdown
The city administration has predicted an economic slowdown in the capital during the second half of the year due to the impact of the global economic downturn
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he city administration has predicted an economic slowdown in the capital during the second half of the year due to the impact of the global economic downturn.
'The global economic downturn over the past four years has affected Indonesia's economy. In Jakarta, we forecast that economic growth will stand between 6.3 percent and 6.7 percent, higher than the national economic growth assumption of between 6.2 percent and 6.6 percent,' Governor Joko 'Jokowi' Widodo said during a plenary session on a revised budget draft at City Hall on Wednesday.
Jakarta's economic growth stood at 6.3 percent during the second quarter, down from 6.5 percent during the first quarter. Economic growth during the first half of the year was lower than the figure predicted in the 2013 city budget of between 6.8 percent and 7 percent.
According to Bank Indonesia (BI), the slowdown has been triggered by drops in non-property investments and exports.Meanwhile, 'the construction sector has been stable due to high property demand,' BI said in a statement.
Jokowi has also revised the city's annual income target, lowering by 1.52 percent to Rp 26.26 trillion from Rp 26.67 trillion.(dic)
