BANDUNG-Policy Economic Dialogue Policy and West Java Province Financial Forum, taking place at Gedung Sate, led by Regional Secretary of West Java Iwa Karniwa and the Chief Representative of Bank Indonesia West Java Province, on Thursday (20/10).
Forum with the theme "Promoting Inclusive and Sustainable Economic Growth "is aimed to discuss strategies and policies needs to be focused to maintain the momentum of economic recovery amid risk which is still growing both domestically and globally.
In addition to those risks, it has mapped several priority economic challenges of West Java that can fundamentally hinder that economic growth acceleration and equitable distribution of public welfare.
In general, economic conditions of West Java observe to be well especially amid increasing economic growth accompanied by inflation rates which continued to decline during the first half of 2016. In line with this, the poverty rate and the unemployment rate until the first quarter 2016 was also observed to decline on an annual basis.
However, economic growth accelerated in the second quarter 2016 amounted to 5.88% is still below the average growth of Gross Domestic Products (GDP) of West Java for the last 6 years of 6.02%. It indicates that the economic in West Java is not fully restored to its fundamental growth rates.
From the aspect of inequality, economic growth is slowing, especially up 2015 accompanied by inequalities reflected from ratio which also increased relative to the level of 0.41, although still below the threshold 0.50 gaps.
By sector, the growth of the manufacturing sector and agriculture sector in the second quarter 2016 were respectively 5.46% and 4.87% already above the average growth over the last 6 years (Processing industry 4,38% and agriculture industry 2.26%).
On the contrary, the growth of the trade sector in the second quarter 2016 amounted to 4.16% is still below the historical average of 7.93%, this is in line with the community consumption patterns which are a bit restrained during the economic slowdown.
Especially the manufacturing sector even though its growth has been located above its historical, but the installed capacity at the plant until quarter III is still not optimal ie at the level of 73.3%, where the average capacity installed plant over the last 6 years by 79%.
In terms of exports, export characteristics of processing industries in West Java still dominated by medium tech (44.46%) and low tech (40.76%) while high-tech share of only 14.78%. In the future, exports share needs to be improved especially manufactured products exports that are high tech as it gives added higher value. jo