Jakarta (ANTARA) - Bank Indonesia (BI) urged the Jakarta provincial government that apart from focusing on the capital city relocation, it should also pay attention to inflation control and conducting digitalization in all sectors to support economic growth.

"There are three challenges that need to be addressed and responded to in the future, specifically preparation for the capital city relocation, inflation control, and the implementation of digitalization,” Deputy Governor of BI Juda Agung remarked during the inauguration of the head of the Jakarta BI Representative Office here on Friday.

Regarding the plan to relocate Indonesia’s capital city to East Kalimantan, Agung encouraged the Jakarta provincial government to redefine Jakarta’s position after no longer holding the status of capital city.

At Friday’s event, he underscored the need to control inflation in Jakarta, as the province has a significant contribution to the national inflation, at 17 percent to the national economy.

“Jakarta is not a producer. Hence, efforts to control inflation are challenging,” he affirmed.

Agung also encouraged digitalization efforts for Jakarta as an inclusive smart city.

According to the deputy governor, Jakarta has more advanced support and digital literacy. Thus, the initiatives for QR code payment through Quick Response Code Indonesian Standard (QRIS) and digitalization in transactions of regional governments, transportation, and micro, small, and medium enterprises (MSMEs) should be increased.

“In the context of transportation digitalization, BI is also following the plan of implementing ERP (electronic road pricing) in Jakarta, for which one of the goals is to tackle the problem of congestion,” he remarked.

He also urged the newly appointed head of the Jakarta BI Representative Office, Arlyana Abubakar, to provide inputs to the Jakarta Provincial Government, including to seek new sources of economic growth.

In addition, the BI deputy governor spotlighted the importance of coordination for inflation control, both between institutions in Jakarta and with the governments of other regions, as well as increasing the role of commodity producer regions within and outside Java.

BI recorded that Jakarta’s economic growth stood at 5.25 percent in 2022, an increase from 3.56 percent in 2021.

Jakarta’s inflation in January 2023 was under control, at 3.83 percent, which is lower than the national rate.

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Translator: Dewa Ketut, Raka Adji
Editor: Rahmad Nasution
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