GRDP Quarter 2 2020 Release - News - BPS-Statistics Indonesia Dki Jakarta Province

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GRDP Quarter 2 2020 Release

GRDP Quarter 2 2020 Release

August 6, 2020 | BPS Activities


The Large-Scale Social Restriction Policy (PSBB) as an effort to contain the spread of Covid-19 has almost stopped all community activities and has had such a large impact on economic performance, even reaching social activities. In the second quarter of 2020, Jakarta's economic growth (y on y) contracted minus 8.22 percent. This figure is the lowest in the last 10 years, although not as deep as the 1998 economic crisis.

Tourism was the first sector to be affected by this policy. This can be seen from the added value of the hotel, restaurant, transportation, and other service sectors which are contracted very deeply. This was followed by the manufacturing and construction sectors, which also experienced contraction. Furthermore, the weakening performance in these sectors resulted in a contraction in the performance of the trade sector. This is due to a decrease in demand for raw and auxiliary materials.

The decline in economic performance has weakened people's purchasing power and led to a decline in household consumption. A well-controlled inflation rate was not sufficient to compensate for the decline in people's income, so that household consumption expenditure (PKRT) contracted quite deeply by minus 5.23 percent (y-o-y) and was no longer able to become a driving force for the Jakarta economy.

Furthermore, the overall weakening of aggregate demand has inspired business players to delay investment. This caused the Gross Fixed Capital Formation (PMTB) to contract deeply by minus 10.36 percent (y-o-y). In addition, as part of the global community that has been affected by Covid-19, pressure on the economy of DKI Jakarta has also come from outside related to the declining flow of goods and services in and out of Jakarta.

More at s.bps.go.id/pdrb-0820
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