West Java Optimistic as Growth Picked Up in Q3, Tops Indonesia’s Realized Investment

Terasjabar.co – West Java Governor Ridwan Kamil is optimistic about West Java’s investment outlook in the Q4 after the province’s economic contraction moves up to 4.08 in the third quarter, or 3.37 percent from the previous quarter. Moreover, West Java’s total number of realized investment from January to September is the largest in the country, that is Rp 86.32 trillion (US$6.1 billion).

“West Java contributed to 14.1 percent of the nation’s realized investment,” Ridwan said during the 2020 West Java Investment Summit (WJIS).

West Java office of Bank Indonesia (BI) deputy director Taufik Saleh reported that three out of ten sectors had picked up in the third quarter, namely agriculture, manufacture and construction, and trade.

Meanwhile, the sectors which reported the most realized investment from January to September and helped buffer the province’s economy during the health crisis are construction (22.5 percent), transportation, warehousing and communication (16.41 percent), housing, estate, industry and offices (14.89 percent), electricity, gas and water (9.97 percent) and motor vehicle and other means of transportation (5.94 percent).

The province’s effort to recover the economy amid the COVID-19 pandemic has also been supported with a state loan of Rp 1.9 trillion lent through state-owned infrastructure financing firm PT Sarana Multi Infrastruktur (SMI). Finane Minister Sri Mulyani Indrawati said in July that the funds were raised by sovereign debt papers (SBNs) bought by the central bank that allow low debt costs for regional governments.

Moreover, to strengthen the investment climate in the province, West Java’s BI chief representative Herawanto suggested the provincial administration to align and harmonize its policies with the policies in regencies and cities as investment implementation occurred in the regency and city level.