Jakarta city targets 6.7 % growth in 2012
Jakarta Governor Fauzi Bowo is optimistic that the capital will see the same economic growth rate of 6.7 per cent this year as was seen last year.
"Given the plan to raise the price of subsidized fuels, we predict our economic growth this year will be the same as last year`s, namely 6.7 per cent. What is important is that the inflation rate will not be too high due to an increase in transportation fares and basic commodity prices," he said at a meeting of the Jakarta provincial chamber of industry and trade here on Wednesday.
Noting that the service and trade sectors will continue to dominate the local economy, he said the Jakarta government will also try to ensure that micro, small and medium scale businesses will grow.
"The plan to suspend tax on food stalls with a turnover of more than Rp200 million a year or Rp600 thousand a day, as of today, is evidence of the Jakarta administration`s support for micro, small and medium businesses," he added.
At the meeting, the governor also disclosed plans to develop the mass rapid transportation (MRT) system, underground drinking water pipelines, and the special economic zone in Marunda, north Jakarta.
"The question of MRT is not simple because there must be co-operation between the government and private investors. Under the co-operation, the government only provides panel and signal systems, while private investors build the rest of the project," he noted.
Further, he said the Japanese government has pledged Special Term for Economic Partnership (STEP) loans payable in 40 years with a grace period of 10 years. The loans carry an interest rate of 0.45 per cent per year.