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 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 Q2-2020, West Java economic growth slightly declined to -5, 98% (yoy). However, such growth was slight difference national performance at 2,73% (yoy). West Java growth in Q2-2020 was supported by sharp growth of over 7,64% in agriculture. Indonesia's 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 Indonesian economy through the tourism, trade and investment. Furthermore, large-scale social restriction policies also affect domestic demand.% (YOY) Jawa Barat Nasional 2.97 2.73 -5.32 I II III IV I II III IV I II III IV I II III IV I II III IV I II 2015 2016 2017 2018 2019 2020 -5.98 National and West Java Economic Growth REGIONAL INVESTOR RELATIONS UNIT BANK INDONESIA WEST JAVA PROVINCE ECONOMIC GROWTH Top Sectors with Highest Contribution to GDRP (as of Q2-2020) AGRICULTURE MANUFACTURING 7,64% -8,00% 8.09 7.64 4.64 2.08 1.58 -1.52 -10.92 -8.00 III'19 IV'19 I'20 II'20 III'19 IV'19 I'20 II'20 TRADE & RETAIL -11,15% -6,76% CONSTRUCTION 7.75 7.26 5.18 5.31 5.31 0.15 -11.15 -6.76 III'19 IV'19 I'20 II'20 III'19 IV'19 I'20 II'20 REGIONAL INVESTOR RELATIONS UNIT BANK INDONESIA WEST JAVA PROVINCE INFLATION CPI 105.64 in May 2020 , 105.98 in June 2020; therefore inflation of 0.32 percent occurred. In June 2020, West Java CPI recorded an inflation at 0.32% (mtm), Increased compared to infation in the Q1 2020 is 0.31% (mtm). % (YOY) 5 JAWA BARAT NASIONAL 5 4 4 3 3 2 2 1 1 0 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 2017 2018 2019 2020 Inflation in June 2020 was Volatile food in Q2 2020 was Administered prices in Q2 Core inflation in Q2 supported by commodities in recorded a deflation at 2,02% 2020 experienced deflation 2020 remained under core inflation that include (mtm). In annual terms, the of -0,02% (mtm). In annual control at a low level, residential rental and train VF inflation was recorded very terms, AP inflation was both monthly and cost. While the deflation was high at 1,25% (yoy). recorded at 2,08% (yoy). annually which was boosted by tabacco, food and recorded at 0,37% beverage, houseware, financial (mtm) and 2,31% (yoy) support, hospitalized, accordingly. communication, technology and etc. 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. Up until 2020, West Java foreign trade balance continues to record positive net exports, supported by the strong export growth and decreasing import growth. Growth in Exports of Goods % (YoY) % (YoY) 200% Manufaktur (RHS) Industri Otomotif 40% 30% 150% Industri Elektronik Industri TPT (RHS) 20% 100% 10% 50% 0% • West Java exports were supported by 4 (four) -10% 0% main sectors which are: Manufacturing, -20% Otomotif, Electronics, and TPT-rhs. -50% -30% -100% -40% 60 I II III IV I II III IV I II III IV I II III IV I II III IV I II % (YOY) 40 Total Ekspor USA Eropa ASEAN 2015 2016 2017 2018 2019 2020 20 0 • By the share, the largest export commodity in -20 the Q2 2020 is West Java. Otomotif (16,76%), -40 electronic(16,66%), TPT (9,96%), and food and -60 beverages (8,26%). 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 2013 2014 2015 2016 2017 2018 2019 2020 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 : -5,98% (Q2) •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% (Q1) •Eco growth : 7,28% (Q1) 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.1.831.8852019 (USD 122,13) per2020 month. 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 Note: Since Q2-2016, Indonesian Worker is additional data of labor absorption. Labour Absorption: West Java Provincial Regulation No. 16 of 2015 concerning Implementation of Manpower. Pasal 29 : Every worker has the same rights and obligations to choose, get, or change jobs and obtain a decent income at home or abroad which is carried out in accordance with statutory provisions. Pasal 33 : Report on job vacancies to the Office in charge of manpower in the Regency / City for companies located in one Regency / City. The vacancy report as referred to in paragraph (1) shall at least contain: a. the amount of labor needed; b. gender; c. education; d. skills; e. competence; f. age; and g. salary / wages.