The Bank of Indonesia's West Java branch predicts a continued positive economic trend in Q2 2023, following a 5% growth recorded in Q1 2023. Bank Indonesia's West Java representative, Erwin Gutawa Hutapea, stated that this optimism is in line with the excitement surrounding the Eid al-Fitr holiday, as West Java is one of Indonesia's largest travel destinations. Travel activities are expected to accelerate the performance of the food and beverage accommodation, food industry, and transportation sectors. Despite global economic uncertainties, the province's consumer confidence index increased, suggesting an increase in purchasing power and trust in the economy. West Java's economy is expected to grow between 4.7-5.5% YoY in 2023, supported by increased community mobility.
However, new Covid-19 variants pose a challenge for the government, as the emergence of new cases may reduce mobility and economic activity. Thus, collaboration with all stakeholders is essential to maintaining stability and promoting economic recovery. To achieve this, various efforts, such as investment promotion, digitalisation expansion, SME strengthening, and connectivity infrastructure optimisation, need to be implemented continually. West Java's economy grew by 5% YoY in Q1 2023, surpassing Q4 2022's 4.61% growth, placing West Java as the third-highest province in Java Island for growth. High economic growth reflects good domestic demand resilience amid ongoing global economic uncertainty.
