Alfi Dinilhaq, Jakarta – Jakarta's economy recorded solid growth in 2025, expanding 5.21% year-on-year, surpassing Indonesia's national growth rate of 5.11%, according to data released Thursday by the Central Statistics Agency (BPS). The capital city continued to make a substantial contribution to the national economy, accounting for 16.61% of Indonesia's GDP.

Governor Pramono Anung credited the performance to collaborative efforts between government, businesses, and residents. "Jakarta's growth above the national average reflects the power of collaboration. The government maintains a supportive business climate, businesses create value, and residents continue to participate actively in the city's economy," he said at Jakarta City Hall on Thursday.

Almost all sectors in the Big Durian posted positive growth last year. The accommodation and food and beverage sector led the gains, expanding 9.33%, followed by transportation and warehousing at 8.69% and other services at 8.46%. The results signal a recovery in mobility and tourism-dependent industries, as well as consumer-driven sectors.

Household consumption remained the largest driver of Jakarta's economy, contributing 62.8% of total expenditure. Gross fixed capital formation contributed 33.79%, while government consumption added 13.2%, highlighting the dual importance of maintaining purchasing power and stimulating investment for sustainable growth.

The city's economic strength was particularly evident in the fourth quarter of 2025, when GDP growth accelerated to 5.71% year-on-year. During this period, the accommodation and food and beverage sector expanded 8.40%, other services grew 8.32%, and business services increased 8.11%.

Pramono said the strong year-end performance reflected targeted policies to boost economic activity and support businesses. "We deliberately provided stimulus at the end of the year, not just to chase growth numbers but to keep the economy running and protect jobs," he said.

As part of these efforts, Jakarta's provincial government rolled out fiscal incentives, including partial tax relief on food and beverage and hotel services. Under Governor Regulation No. 722 of 2025, incentives reached 50% in August – September and 20% in October – December, benefiting 45,248 taxpayers with a total relief of Rp 495 billion.

The administration also waived advertising taxes in shopping malls and hotels as part of the Jakarta Festive Wonders program, which aimed to digitize transactions and enhance seasonal decorations. Despite the tax relief, advertising revenue grew 8.85% month-on-month, while food and beverage and hotel revenues rose 7.73% and 9.18%, respectively.

The festive season also boosted consumer activity, with mall foot traffic up 20% and hotel occupancy rising from 85% to 90% compared with the same period in 2024. Jakarta Festive Wonders drew 81 participants and targeted Rp 15.25 trillion in transactions, marking a 15% increase over normal periods.

Looking ahead, Pramono emphasized the government's commitment to inclusive, sustainable growth. "We will continue to ensure fiscal policies and development programs strengthen purchasing power, create jobs, and support businesses. Economic growth must benefit all residents of Jakarta," he said.

Source: https://jakartaglobe.id/business/jakartas-2025-gdp-growth-hits-521-on-strong-consumption-and-touris