Presentation Book of West Java 2020
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Presentation Book of West Java 2020 Government of West Java Province CENTRAL BANK OF INDONESIA EXPLORING NEW SOURCES OF GROWTH IN SOUTHERN PART OF WEST JAVA IN ORDER TO ENHANCING WEST JAVA INVESTMENT AND ECONOMIC GROWTH INDONESIA ECONOMIC REVIEW INDONESIA PROFILE President : Joko Widodo Vice President : K.H. Ma’ruf Amin Capital City : Jakarta City Province : 34 Province Regencies/Cities : 416 Regency, 98 City INDONESIA 160,28 Located in Nuasantara in Southeast Asia 12,03 Indonesia Area: 1.919.440 square kilometers. NET Billion USD Thousand Based on Tourism Indonesia Total Population: 268.583.016 people or Export AS OF JUNE International 3.49% of World Total Population. With population Visitor 2020 Tourist Arrival growth around 1.1% each year. MARKET POTENTIALS Indonesia is the fourth-largest country in terms of 71.92 0.18% population size will offers the biggest potential Categorized BASED ON JUNE 2020 market, with growing number of middle-class HDI As HIGH INFLATION households. REGIONAL INVESTOR RELATIONS UNIT BANK INDONESIA WEST JAVA PROVINCE Investment Realization Quarter III 2020 DDI: Domestic Direct Investment FDI: Foreign Direct Investment *) The Target of 2020 in accordance with letter of Head of BKPM No. 102/A.1/2020 dated April 16th 2020 regarding the Proposed Revision of the investment Targets 2020-2024 due to the Impact of Covid-19 and letter of Ministry of National Development Planning of the Republic of Indonesia to BKPM RI No. B.265/M.PPN/D1/PP.03.02/04/2020 dated April 24th 2020 regarding the Approval of the Proposed Revision of Investment Target 2020-2024 due to the Impact of Covid-19. **) against The Targets of 2020 . The value of investment in Quarter III 2020, the investment realization during three months period of report (July – September 2020), is based on investment realization report from DDI and FDI companies. Oil and Gas, Banking, Non-Bank Financial Institution, Insurance, Leasing, and Home Industry are excluded. The investment value is in Rupiah Trillion (T), and US$ 1= Rp 14,400 based on National Budget 2020 . Investment realization in Quarter III 2020: Rp 209.0 T, increase around 8.9 % from Quarter II 2020 (Rp 191.9 T) or increase around 1.6 % from Quarter III 2019 (Rp 205.7 T) . Investment realization in January – September 2020: Rp 611.6 T, increases around 1.7 % from that in January – September 2019 (Rp 601.3 T) REGIONAL INVESTOR RELATIONS UNIT BANK INDONESIA WEST JAVA PROVINCE WEST JAVA ECONOMIC REVIEW WEST JAVA PROFILE Governor : Moch. Ridwan Kamil Vice Governor : Uu Ruzhanul Ulum -5.98% Capital City : Bandung Top 3 Contributos To National GDP Regencies : 18 Regencies & 9 Cities 31 Thousand Based on Tourism International Visitor Tourist Arrival WEST JAVA Loated in Java Island in 1.96 72.30% Indonesia NET Billion Categorized West Java Area: 35,377.76 Export USD HDI As HIGH square kilometers. West Java Total Population: 49 million people or 18.1% of Indonesia Total Population. With population growth around 1.34% each year, West Java total population in 7.64% 2.73% 2021 is expected to reach 50 MARKET POTENTIALS million people. Highest Contribution Highest Contribution As the most populous province in Indonesia, West Java offers to National GDP to National Export the biggest potential market, with growing number of middle- class households in Manufacturing Sector of Goods REGIONAL INVESTOR RELATIONS UNIT BANK INDONESIA WEST JAVA PROVINCE ECONOMIC GROWTH In Q3-2020, West Java economic growth (-4,08%-yoy) slightly better than Q2-2020 (-5, 98% - yoy). However, such growth was slight difference than national performance at - 3,49% (yoy). West Java growth in Q3-2020 was supported by recovery growth of expenditure side and production side. West Java economic prospects in 2020 are expected slightly down compared to 2019. This decreased is mainly influenced by the detained prospects for economic recovery due to the wide spread impact of Covid-19, which affects the West Java economy through the tourism, trade and investment. Furthermore, large-scale social restriction policies also affect domestic demand. National and West Java Economic Growth 8.00 6.00 4.00 2.00 -3.49 0.00 -5.32 I II III IV I II III IV I II III IV I II III IV I II III -2.00 -4.00 2016 2017 2018 2019 2020 -6.00 West Java National -4.08 -8.00 -5.98 REGIONAL INVESTOR RELATIONS UNIT BANK INDONESIA WEST JAVA PROVINCE ECONOMIC GROWTH Top Sectors with Highest Contribution to GDRP (as of Q3-2020) AGRIULTURE INFORMATION & COMMUNICATION 39.75 39.58 8.09 7.64 0,26% 1,73% 3.67 24.89 1.67 -10.92 IV'19 I'20 II'20 III'20 IV'19 I'20 II'20 III'20 EDUATION 0,23% FINANCIAL 0,04% 10.31 9.83 6.06 7.76 7.79 6.86 1.74 -2.99 IV'19 I'20 II'20 III'20 IV'19 I'20 II'20 III'20 REGIONAL INVESTOR RELATIONS UNIT BANK INDONESIA WEST JAVA PROVINCE INFLATION West Java inflation in Q3 was recorded -0,01% (mtm); better than the Q2 2020 which was recorded 0,32% (mtm). If compared to national inflation (-0,05%, mtm in Q3 2020), West Java Inflation is better than national. % (mtm) 2.00 West Java National 1.50 1.00 0.07 0.32 0.50 0.07 -0.01 0.00 0.18 -0.50 -0.05 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 2019 2020 deflation in Q3 2020 driven Volatile food in Q3 2020 was Administered prices in Q3 Core inflation in Q3 by prices drop for strategic recorded a deflation at 2020 was recorded 2020 was recorded at commodities, such as staple 0,73% (mtm). In annual inflation at 0,001% (mtm). 0,15% (mtm) and food, beverage and tobacco, terms, the VF inflation was In annual terms, AP 2,06% (yoy) personal care stuffs, and recorded at 0,56% (yoy). inflation was recorded at accordingly. It’s driven other services group 1,74% (yoy). by gold commodities REGIONAL INVESTOR RELATIONS UNIT BANK INDONESIA WEST JAVA PROVINCE EXPORT/IMPORT GROWTH Since 2013, West Java keeps an outstanding record of positive net exports over the years. However, until 2020, West Java foreign trade balance was recorded negative net export due to COVID-19 pandemic that caused limited activity both social and economy. Growth in Exports of Goods Growth in Exports Destination Country % (YoY) Manufacture (Right Axis) Automotive Industry 60 % (YoY) EXPORT TOTAL US Europe ASEAN 200% Electrical Industry Beverages 40% 40 Textile Industry (Right Axis) 30% 150% 20 20% 100% 0 10% -20 50% 0% -40 -10% 0% % (YOY) -60 -20% -50% I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III -30% 2013 2014 2015 2016 2017 2018 2019 2020 -100% -40% I II III IV I II III IV I II III IV I II III IV I II III IV I II III 2015 2016 2017 2018 2019 2020 • West Java exports were supported by 4 (four) • By the three largest share export commodity for main sectors which are: Manufacturing, West Java, in Q3 2020 all of the largest export Automotive, Electronics, and TPT-rhs. By Q3 sector experience contractions with deepest 2020, West Java exports started to increase contractions shown by Automotive Industry along with global economy recovery. REGIONAL INVESTOR RELATIONS UNIT BANK INDONESIA WEST JAVA PROVINCE RECENT ECONOMIC REVIEW WEST JAVA HDI : 72,03% Bekasi City Population : 49,94 million Eco growth : -4,08% (Q3) •HDI : 81.59% •Population : 3,89 million •Eco growth : 5,6% (Q2) Bandung City Depok City •HDI : 81.06% •HDI : 80,82% •Population : 3,83 million •Population : 2,48 million •Eco growth : 7,79% •Eco growth : 7,28% Cirebon City •HDI : 74.92% •Population : 322.322 •Eco growth : 5,95% Bogor City •HDI : 76,23% Tasikmalaya City •Population : 1,12 million Sukabumi City •HDI : 72.03% •Eco growth : 6,21% •Population : 663.986 •HDI : 74.31% •Eco growth : 5,99% •Population : 330.691 •Eco growth : 5,3% REGIONAL INVESTOR RELATIONS UNIT BANK INDONESIA WEST JAVA PROVINCE MINIMUM WAGE RATE • The average minimum wage in West Java for the period of 2020 is around Rp.2.963.496 (USD 197,57) per month. • Karawang Regency has the highest wage with Rp.4.594.325 (USD 306,29) per month. • Banjar City has the lowest wage rate with Rp.1.831.885 (USD 122,13) per month. 2019 2020 City/Region Rp Rp USD Karawang, Kabupaten 4.234.010 4.594.325 306,29 Bekasi, Kota 4.229.757 4.589.709 305,98 Bekasi, Kabupaten 4.146.126 4.498.962 299,93 Depok, Kota 3.872.552 4.202.106 280,14 Bogor, Kota 3.842.786 4.169.807 277,99 Bogor, Kabupaten 3.763.406 4.083.670 272,24 Purwakarta, Kabupaten 3.722.310 4.039.068 269,27 Bandung, Kota 3.339.581 3.623.779 241,59 Industrial zones & big Bandung Barat, Kabupaten 2.898.745 3.145.428 209,7 cities have the Bandung, Kabupaten 2.893.075 3.139.275 209,29 highest wage rate Cimahi, Kota 2.893.075 3.139.275 209,29 Sumedang, Kabupaten 2.893.075 3.139.275 209,29 Sukabumi, Kabupaten 2.791.016 3.028.532 201,9 Subang, Kabupaten 2.732.900 2.965.468 197,7 Cianjur, Kabupaten 2.336.005 2.534.799 168,99 Sukabumi, Kota 2.331.752 2.530.183 168,68 Indramayu, Kabupaten 2.117.714 2.297.931 153,2 Tasikmalaya, Kota 2.086.530 2.264.093 150,94 Tasikmalaya, Kabupaten 2.075.189 2.251.788 150,12 Cirebon, Kota 2.045.422 2.219.488 147,97 Cirebon, Kabupaten 2.024.160 2.196.416 146,43 Garut, Kabupaten 1.807.286 1.961.086 130,74 Majalengka, Kabupaten 1.791.693 1.944.166 129,61 Kuningan, Kabupaten 1.734.994 1.882.642 125,51 Ciamis, Kabupaten 1.733.162 1.880.655 125,38 Pangandaran, Kabupaten 1.714.673 1.860.591 124,04 Banjar, Kota 1.688.218 1.831.885 122,13 REGIONAL INVESTOR RELATIONS UNIT BANK INDONESIA WEST JAVA PROVINCE *) USD to IDR Exchange Rate, 2020: 15.000 Labor Absorption Trend of Indonesia Labor Absorption 2015-Sept 2020: Quarterly Note: Since Q2-2016, Indonesian Worker is additional data of labor absorption.