Why Invest in Jakarta? slide image

Why Invest in Jakarta?

www Strong GDP Growth' %,yoy Indonesia GDP Growth 5.05 4.96 2.97 5.06 5.01 6.0 4.0 2.0 0.0 -2.0 -4.0 -6.0 -5.32 I IV T III IV I III IV I |||||IV III IV I 2015 2016 2017 2018 2019 Favourable GDP Growth Compared to Peers² %,yoy 10.00 -2.19 -3.49 II III IV 2020 ⚫ The vaccination rollout and national policy synergy are expected to drive Indonesia's economic recovery momentum moving forward. Indonesia's economy contracted -2.19 (yoy) in the fourth quarter 2020, However it recorded a shallower contraction compared with -3.49% (yoy) in the third quarter of 2020. A fourth-quarter improvement was recorded across nearly all demand-side components and economic sectors. For the year, therefore, the economy of Indonesia shrank -2.07% in 2020. Looking forward, domestic economic growth, is projected to gradually gain momentum in 2021. • The economic improvements in the fourth quarter of 2020 were supported by stimulus realization and a positive external sector contribution. Government consumption expanded 1.76% (yoy) in the fourth quarter of 2020 due to the realization of government stimuli, dominated by social assistance disbursements, other goods and services expenditure as well as regional transfers and village fund disbursements. Meanwhile, household consumption growth recorded a shallower contraction to -3.61% (yoy) in the fourth quarter of 2020 compared with -4.05% (yoy) in the previous period in response to greater public mobility. Investment growth also experienced a slightly shallower contraction to -6.15% (yoy) in the reporting period compared with -6.48% (yoy) in the previous period. On the other hand, net exports enjoyed a positive position as export performance improved in line with economic recovery momentum in several of Indonesia's major export destinations amidst comparatively subdued import performance. • Most economic sectors recorded incremental gains in the fourth quarter of 2020. Sectors associated with healthcare as well as work-from-home and school-from-home activities continued to improve and maintained positive growth, including Information and Communication as well as Health Services. In addition, Agriculture and Education also recorded positive growth, while the Manufacturing Industry and Trade, accounting for large economic contributions, improved to experience shallower contractions. 8.80 7.40 5.00 6.10 4.00 0.00 Growth Prospect -5.00 -10.00 Bulgaria India Colombia Indonesia Institutions 2021 GDP growth (%YoY) 2021 Budget 5.0 Philippines -15.00 Bank Indonesia 4.3-5.3 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021* IMF (WEO, Jan 2021) 4.8 1. Source: Central Bureau of Statistics of Indonesia (BPS), **Including non-profit household consumption 2. World Bank (Global Economic Prospects, Jan 2021) 4.4 Source: World Economic Outlook Database - April 2020; * indicates estimated figure. ADB (ADOS Dec 2020) 4.5 Green Investment Energy 6 Consensus Forecast (February 2021) 4.5
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