PORTALJABAR, BANDUNG CITY - Bank Indonesia is optimistic that West Java's economic growth in 2025 will be better than 2024, in the range of 4.7 to 5.5 percent.

"Last year, West Java's economic growth achievement, as released by BPS, reached 4.95 percent in 2024, still within the government's target range of 4.7 to 5.5. This year, we are still optimistic that it will be within that target," said Deputy Head of Bank Indonesia for West Java, Muslimin Anwar, Thursday (6/2/2025).

He emphasized that the government's policy regarding efficiency in the APBN/APBD will certainly have an impact on slowing growth in several sectors, but other sectors will actually grow so that they can drive GRDP.

"Efficiency will certainly give rise to pros and cons. On the one hand, there may be a correction or slowdown, but on the other hand, it will encourage growth. We are sure that the government has calculated that to achieve 8 percent growth in 2028 or 2029," he said.

BI itself will provide strengthening to the rupiah exchange rate to maximize foreign exchange. Export and import demand will also remain high. Export import is one of the supporting components of growth besides Investment and Consumption.

"Government consumption will normalize post-election, and we are confident it will grow over time, especially if regional heads are officially inaugurated and start working. Furthermore, coordination and synergy between the center, provinces and districts/cities must be better," he stressed.

Economic observer from Pasundan University, Acuviarta Kartabi, added that West Java's economic growth in 2025 could still be higher than in 2024, provided that the West Java APBD budget savings are used to encourage growth in the real sector.

"From the fiscal side, there is an impact of budget savings on various business sector activities, so we must ensure that budget shifting or efficiency really has leverage on economic growth," he said.

According to him, there needs to be sectoral diversification in order to support economic growth by encouraging the industrial sector, agricultural sector and trade sector as the 3 largest sectors.

Of course, steps are also needed to encourage potential sectors, such as the accommodation and food and beverage services sector, the transportation and warehousing sector, and the property sector.

"I think from the sectoral side, that is the macro step. Micro steps need to be attempted so that potential sectors can be pushed stronger to balance the role of the three largest sectors," added Acu.

Regionally, the role of district and city governments in encouraging economic growth is also strengthened on a thematic basis, so that key sectors in the regions must be encouraged with stronger local policies.

From the expenditure side, it is hoped that inflation can be stable so that household consumption can optimally drive economic growth, as well as investment.

These two components, said Acu, must continue to be pushed as locomotives, even though West Java's foreign trade performance appears to be running slowly despite positive growth, but there is minimal diversification of commodities and reach of non-traditional market areas.

"There will be a big leap if we can develop the downstreaming of agricultural, plantation, fisheries and forestry commodity industries."

"I also see that our investment potential is very large, it only needs to be encouraged between the central and regional synergy, many investments are constrained by permits, availability of water, land, gas fuel, and suitable labor for investment needs. In addition to exports, we must be more varied, especially exports of agricultural commodities," concluded Acu.