TRIBUNJABAR.ID, BANDUNG - West Java's economy in 2024 is predicted to still be bright. Macroeconomic indicators show that the economy of West Java will still grow positively next year. This can be seen from the realization of West Java investment and exports until September 2023 which is still high, even the highest nationally.

Head of the West Java Province Department of Industry and Trade, Noneng Komara Nengsih, said that investment realization from January to September 2023 reached IDR 137.2 trillion. West Java is optimistic that investment will still be the highest nationally until December. For your information, in 2022, total investment in West Java will reach IDR 175 trillion.

Investment in the West Java industrial sector contributed IDR 79 trillion or 51.5 percent of total investment during January to September 2023, becoming the highest contributor to investment in both PMA and PMDN. Meanwhile, in total, the trade sector was the fifth highest, with 68.75 percent coming from PMDN.

"The prospects for the West Java processing industry sector in 2024 show a positive trend, driven by several conditions including global economic recovery, growth in domestic demand, high investment in the industrial sector and controlled inflation," said Noneng Komara in Bandung, Sunday (10/12/2023) .

The global economy continues to recover gradually from the pandemic and Russia's invasion of Ukraine raised projected economic growth from 2.8 percent to 3 percent, potentially increasing global demand and lowering raw material prices.

Purchasing Manager's Index (PMI) Indonesia's processing industry has increased from 50.9 in 2022 to 51.7 in November 2023 driven by an increase in domestic orders, although exports are still slow

Meanwhile, West Java inflation is under control within target, decreasing from 6.17 percent in February 2023 to 2.85 percent in November 2023 (yoy). With controlled inflation, people's purchasing power will increase so that domestic demand will also increase.

West Java is the province with the largest export contribution from January to October 2023. Cumulatively from January to October 2023, the total trade balance of West Java recorded a surplus of 20.57 billion US dollars.

Bank Indonesia estimates that the West Java economy will continue to grow positively in 2024 in the range of 4.9 percent-5.7 percent amidst global economic uncertainty. Head of Bank Indonesia West Java Representative, Erwin Gunawan Hutapea, said that a number of sectors would experience strengthening, including the agricultural and consumption sectors.

"So that in the midst of these challenges in 2024, it seems we remain optimistic that in 2024 we can grow better than 2023," he said. Apart from that, he also assessed that the political contestation of the Presidential Election, Legislative Election and Regional Head Election would contribute to increasing public consumption.

"Of course, this will also make the domestic economy grow higher, a phenomenon like that is when there are presidential elections, legislative elections, regional elections, the euphoria will cause higher consumption," he added. Therefore, he hopes that with maintained price stability and better consumption, it will become one of the driving forces of the economy, at least in the first quarter and fourth quarter of 2024.

Erwin said there were seven policy recommendations to encourage the economic revival of West Java.

The first recommendation is to expand efforts to control seasonal and structural food inflation. Second, maintaining people's purchasing power through incentives, optimizing the realization of government spending, encouraging equal distribution of investment realization and encouraging exports and local value chains for large industries.

The third recommendation is to encourage accelerated development of connectivity infrastructure. Apart from that, increasing downstream industry, especially the electric vehicle industry. Fifth, expanding digitalization in various aspects of the economy.

Sixth, strengthening new sources of sustainable economic growth such as the sharia financial economy and the green economy. Finally, further strengthening the pentahelix synergy and collaboration of the West Java government.

"Through these various policy recommendations, Bank Indonesia estimates that the economy of West Java in 2024 has the potential to continue to grow positively in the range of 4.9 percent-5.7 percent," he said. (*)

(SOURCE)