PORTALJABAR, BANDUNG CITY - The Regional Government of West Java Province continues to strive to maintain and improve economic performance.

Acting Regional Secretary of West Java Province, Taufiq Budi Santoso, said that West Java's economic performance in 2023 was achieved by 5 percent and had contributed growth of 0.67 percent to the national economy.

West Java is also the province with the highest economic growth rate in terms of business, especially in the transportation and warehousing sectors, at 10.93 percent and the highest economic growth rate in terms of expenditure in the import sector at 17.60 percent.

"West Java is also the province that ranks first in investment realization in 2023 with an investment value of IDR 210.6 trillion," said Taufiq at the 2024 West Java Economic Society (WJES) Kick Off event in Bale Pasundan, West Java Bank Indonesia (BI) office, Kota. Bandung, Thursday (29/2/2024).

Taufiq also said that his party had prepared four strategies to increase West Java investment.

First, namely by increasing certainty and ease of licensing through improving investment services.

Second, encouraging the development of downstream industries based on regional potential and leading sectors in West Java, such as agriculture, plantations and fisheries.

Third, encouraging inclusive investment through job creation and increasing the competitiveness of MSEs through partnerships.

The fourth strategy, said Taufiq, is to accelerate the implementation of the green economy by providing facilities, convenience and incentives for green investment.

Taufiq further explained that there are four strategic areas in West Java which have been mandated in presidential regulations in order to encourage economic growth through improving infrastructure and increasing investment.

The four strategic areas are Bodebekkarpur through Presidential Regulation Number 60 of 2020 and the Bandung Basin area which is mandated in Presidential Decree No. 45 of 2018.

Two other strategic areas, namely the Rebana area and the southern part of West Java, are covered by Presidential Decree No. 87 of 2021.

Meanwhile, at the direction of the President of the Republic of Indonesia, economic growth in 2024 is targeted at 5.7 percent and the investment realization target in 2024 is IDR 1,650 trillion.

"Along with the increase in the national investment target, West Java's investment target for 2024 is projected to increase in the range of IDR 247-250 trillion," he said.

For this reason, there are a number of national investment policy focuses that must be implemented, namely improving sustainable investment policies and competitive investment services and incentives.

Then investments that provide added value and are oriented towards green investment as well as improving the quality of investment in an inclusive and equitable manner.

"We hope that in the future West Java's economic contribution to the nation will continue to increase in line with our increasingly complete infrastructure," said Taufiq.

"Perhaps several years ago West Java was not like DKI and East Java, it did not have its own port and airport with sufficient capacity," he continued.

"Thank God, now West Java has Patimban Port and Kertajati Airport which are operational again. This is extraordinary potential that can fully increase West Java's economic growth," he said.

Taufiq also added that a number of National Strategic Projects (PSN) carried out in West Java also supported economic performance, such as the Cisumdawu Toll Road, the Whoosh fast train, and a number of other PSNs.

Not only that, digitalization of the bureaucracy also contributes to economic growth because the application of digital systems in government services can increase accountability and make it easier to access information and services.

Infrastructure optimization

Meanwhile, Head of West Java Representative of Bank Indonesia (BI), Muhamad Nur, said that to strengthen stability and economic growth, West Java needs to be supported through optimizing infrastructure, new sources of economic growth and digitalization.

Muhamad Nur also said that with various developments, the West Java economy in 2024 is estimated to grow in the range of 4.7 percent - 5.5 percent (yoy). The inflation achievement in 2024 is predicted to be in the range of 2.5 percent ± 1 percent (yoy).

Furthermore, on that occasion Nur mentioned one of the recommendations to maintain economic performance in 2024, namely by maintaining and strengthening efforts to control inflation, especially food inflation, both seasonal and structural.

"In its implementation, we must coordinate with Bapanas (National Food Agency) and Bulog," said Nur.

Efforts to control seasonal inflation include Cheap Market Operations (OP), Cheap Food Movement (GPM), Stabilization of Food Supply and Prices (SPHP), as well as transportation cost subsidies.

Meanwhile, efforts to control structural inflation include expanding and optimizing inter-regional cooperation (KAD), strengthening and evaluating food stock data and regular reporting in order to obtain Regional Incentive Funds (DID).