Asian Games projected to contribute rp22 trillion to Jakarta economy

Jakarta (ANTARA News) - The Asian Games 2018 will surely contribute to the economy of Jakarta and Palembang as co-host of the event, National Development Planning Minister Bambang Brodjonegoro said.

"The Asian Games will have direct and indirect impacts on the economic growth," he said in a discussion held in Jakarta on Sunday.

Bambang, who is also chief of the National Development Planning Agency (Bappenas) said the direct impact of the Asian Games is the increasing economic activities in the two cities which could be seen from government investment to improve sports infrastructures and facilities, not to mention spending by foreign tourists who will attend the event.

Meanwhile, the indirect impact of the Asian Games is added value which can create job opportunities, strengthen economic growth and increase public income, he said.

In total, the Asian Games will directly contribute Rp22 trillion to the Jakarta economy, including Rp13.7 trillion investment in the construction sector, Rp5.8 trillion for the operational activities of the Asian Games and Rp2.4 trillion from visitors` spending.

As a result, the economic output in the capital in the 2015-2019 period is projected to increase by up to Rp40.4 trillion comprising Rp18.5 trillion from the construction of infrastructures and facilities, Rp20.9 trillion from the operational activities of the event and Rp1.2 trillion from visitors` spending.

Bappenas has predicted 408,400 people consisting of 154,069 foreign tourists and 254,332 domestic tourists will visit Jakarta during the Asian Games to be held from Aug 18 to Sept 2.

The agency also projected the recreation and amusement sector will grow 26.1 percent, the broadcast sector 2.81 percent, hotel 2.17 percent, utilities 0.57 percent, construction 0.51 percent, other services 0.47 percent, transportation 0.44 percent and foods and beverages 0.40 percent.

The Asian Games will also directly contribute Rp18.5 trillion to the South Sumatra economy consisting of Rp15.4 trillion investment in the construction sector, Rp2.1 trillion from the operational activities of the event and Rp968 billion from visitors` spending.

The economic output in South Sumatra in the 2015-2019 period is projected to increase by up to Rp11.1 trillion comprising Rp9 trillion from the construction of infrastructures and facilities, Rp1.6 trillion from the operational activities of the event and Rp439 billion from visitors` spending.

 

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