The economy of Solo City has registered a positive growth of 5.57% in 2023, surpassing both provincial and national growth rates. According to Dwiyanto Cahyo Sumirat, Head of the Representative Office of Bank Indonesia (KPw BI) Solo, this achievement is remarkable, especially when compared to the growth rate of Central Java at 4.98% and the national economy at 5.05%. The GDP of Solo Raya is predominantly led by the manufacturing sector, contributing 31.05% to the economy, while construction remains the most dominant sector in Solo. The sectors of accommodation, food, and beverage experienced the highest growth rate, reaching 11.6% in 2023. Despite their relatively small contribution to the overall economy of Solo Raya (around 3.97%), the growth in these sectors was significant, accounting for 7.03% of Solo's economy. The accommodation sector alone saw a growth rate of 42.62% in 2022 post-pandemic, maintaining a growth of 11.6% in 2023.
Furthermore, Solo's tourism potential has also contributed to the growth of other sectors. Solo boasts the highest per capita income among other districts/cities, amounting to IDR 114.8 million per person. However, the increased regional economic growth has also led to a rise in inflation, with Solo's inflation reaching 2.82% in February. Despite being within acceptable limits, this inflation rate remains a concern for authorities, especially considering its timing relative to the target period. Efforts to mitigate inflation include initiatives like the Affordable Food Movement (Gerakan Pangan Murah), subsidized food kiosks, government rice reserves, among others, aimed at ensuring affordable basic necessities for the population. Various commodities, including chicken meat, eggs, various onions, and rice, have contributed to inflation over the past five years, particularly during major holidays such as Eid al-Fitr. Dwiyanto mentioned that rice prices have increased during Ramadan due to insufficient production to meet rising demand, although there is assurance of adequate chicken supply. He expressed hope that this situation would lead to price reductions. Despite challenges, collaborative efforts between stakeholders aim to stabilize prices and ensure economic stability in Solo.
