Bank Indonesia West Java is optimistic that the economy in West Java will continue to grow at 4.6 to 5.4 percent by the end of 2024.

The economic growth is based on a number of factors, including domestic demand that remains strong along with increased community mobility, and also the positive economic impact of organizing simultaneous regional elections until the end of this year.

"There will be spending of money from contestants that occur in many city districts, how many percent of the impact is not yet available, but it will have a positive impact like the presidential and legislative elections yesterday," said the Head of Bank Indonesia Representative of West Java, Muhamad Nur in his presentation, Wednesday, August 7, 2024.

However, there are still a number of global challenges in economic growth in West Java, such as one of which is the increase in geopolitical tension in the Middle East due to the death of a Hamas leader some time ago.

Likewise, the increase in the unemployment ratio in the United States and the divergence of policies of various Central Banks in various countries due to the dynamics of the global economy.

"Therefore, to overcome this, collaboration and policy synergy between parties are needed," said Nur.

Bank Indonesia also explained that in the second quarter of 2024, the West Java economy grew 4.95 percent, an increase compared to the first quarter of 4.93 percent.

Investment is still a sector that can be proud of in West Java, because in the second quarter investment realization reached Rp63.7 trillion and the largest in Indonesia. "The top three investor countries in West Java are Japan Rp 3.09 trillion, South Korea Rp 6.8 trillion, and Singapore Rp 6.7 trillion," he explained.

As for inflation, West Java experienced inflation of 0.06 percent in July. However, the public does not need to worry because this value is still lower than the target, so it can be categorized as under control.

"It is not something that is worrying when viewed on an annual basis, but we are also not left alone, we continue to evaluate and take steps," said Nur.

To realize this, Bank Indonesia together with the Regional Government throughout West Java will hold a High Level Meeting of the Regional Inflation Control Team (TPID) which is planned to be held Thursday, August 8, 2024 in Bandung.

SOURCE