Page 8 - MEDIAJAYA EDITION 7 2020

TOP REPORT for Economy and Finance Sri Haryati
said that the decline in household
consumptions affects greatly on Ja-
karta’s economic growth. “It has great
impact on our economic growth rate,”
she explained. She believed that it was
the factor that caused a slowdown in
Jakarta’s economic growth rate (GDP)
in the first quarter of 2020, which was
5.06% (yoy), lower than the previous
quarter which was 5.96% (yoy). The
number records the lowest of Jakar-
ta’s economic growth rate in the last
10 years.
Even so, the economic growth rate
in Jakarta is still higher than that of
the national growth rate, which is
2.97% (yoy). “Our economic growth
rate is still higher than the national’s,
and we managed to be in the top four
cities with highest GDP rate, along
with North Kalimantan, West Papua
and South Kalimantan,” explained Sri.
The implementation of transition-
8 al PSBB has indeed helped revive the
economy, but the COVID-19 pandem-
ic had already diminished the city’s
budget: Tax revenue had dropped by
50% during the pandemic time. While
on the other hand, the city’s budget
to maintain health and social crisis,
also for the economic stimulus had in-
creased greatly.
The city’s budget deficit in 2020
also increased, reaching 11.7 trillion
rupiahs or 0.4% of its gross regional
product (PDRB). It is estimated that of the UMKM owners could not afford (93.46%) of them are micro and small
the city’s budget (APDB) in 2021 will their loan and were forced to close enterprises (UMK) and 81,000 (6.45%)
also have deficit as much as 8.4 tril- their operations. of them are medium and large enter-
lion rupiahs or 0.3% of its gross re- According to a research conduct- prises (UMB).
gional product. ed by Buku Warung, an account-
ing application for UMKMs, the CO- Fasten Recovery
UMKMs in Turbulence VID-19 pandemic is mostly affecting
the UMKM sectors in restaurants, An economist who is also the vice
The adverse impact of COVID-19 sports, hobbies and building materi- chairman of Jakarta Research Coun-
pandemic had affected greatly on the al. Total transactions in restaurants cil, Sunarsip said that Jakarta govern-
micro, small and medium enterprise had dropped by 70% with revenue de- ment need to conduct strategic and
(UMKM) owners. The pandemic situ- clined by 80%. Meanwhile, the sports quick steps to recover the city’s econ-
ation, along with its social restriction and hobbies industry faced revenue omy. One of the tasks is to regain busi-
affected their mobility to get staples decline by 90% while the building ma- ness existence that greases the wheel
and their sales as well. Many got de- terial stores dropped by 65%. There of economy, including how to return
clining income while some others to- are currently 1.2 millions of UMKMs the unemployed to have jobs. “It’s im-
tally got no sales at all. Hence, most in Jakarta alone, with 1.15 millions portant to guarantee the continuity of