BANDUNG - West Java province is one of the largest contributor to gross regional product (PDRB) after Jakarta and East Java. That makes it important for the national area. It is said by Financial Services Authority (OJK) commissioner Ilya Avianti in the out look of economy 2016 at Gedung Sate on Friday.
"The share of West Java PDRB to national GDP reached 13.30% in the third quarter 2015, or by Rp 307,37 trillion (Constant Price)," he said.
By sector, PDRB structure in West Java is still supported by the manufacturing industry (42.96%) especially Garment Industry, Paper Industry, Chemicals Industry, and Computers and Electronics Industry.
Other sectors forming of PDRB are big and retail trade sector, cars and motorcycles repairs (15.83%) and construction sector (8.24%). On the demand side, West Java PDRB structure is still dominated by domestic consumption (61.69%).
In regard to inflation, the inflation rate combined seven cities in West Java in September 2015 reached 6.11% (yoy) or lower than the national inflation (6.83%). High inflation in West Java can not be separated from the contribution of inflation in Bandung and Bogor, which respectively reached 6.90% and 6.25%.
Meanwhile, the stability condition of the financial system in West Java was quite well. This is reflected in the development of some banking indicators, such as assets, third party funds (DPK) and credit, and the low credit risk. Total assets of commercial banks in West Java in September 2015 rose 12.85% (yoy) reaching of Rp 506,8 trillion. The position of credit/financing increased by 10.04% (yoy) to Rp 324,5 trillion.
On the other hand, deposits collected grew 11.62% (yoy) to Rp 362,1 trillion. Credit risk is reflected by the non-performing loan (NPL) or bad loans in September 2015 on control. Percentage of gross NPL stood at 2.9%. The increase in credit growth is lower than the growth in deposits resulted Loan to Deposit Ratio (LDR) conventional commercial banks in West Java fell from 89.0% in September 2014 to 88.0% in September 2015.
Meanwhile, the micro, small and medium enterprises (UMKM) up to the third quarter-2015 reached Rp 73,5 trillion or 24.63% of total loans. Development of micro small and medium enterprises in West Java is one solution reducing the possibility of global financial turmoil.
"Looking at these developments, we are optimistic about the durability of the economy of West Java in meeting the challenges posed by the global economic turmoil," he said.
One key factor to realise these need is support of favourable conditions, as well as coordination and synergy between various stakeholders ie Local Government, the Financial Services Authority, Bank Indonesia, the Institute of Financial Services, Academia, businesses and elements other communities.
"Therefore, I expect that all parties can consolidate and work together to address all the possible problems that occured. In addition, it is hoped all parties maintain conducive conditions, so as to create a business climate that supports and relatively quiet," he said.