JAKARTA. The capital city is expected to see slower economic growth this year as a result of lower consumption, Bank Indonesia (BI) has said.

BI governor Agus Martowardojo said Jakarta’s economic growth was projected to reach 5.3 to 5.8 percent this year, lower than last year’s 6 percent due to lower consumption.

"In the first quarter, Jakarta saw significantly slower economic growth. [...] We are optimistic that it will be better in the second quarter," the governor said at the inauguration of the BI Jakarta representative office on Monday.

According to BI, consumption and investment remain the main drivers of the city's growth.

Despite its sluggish economy, the central bank said, Jakarta had posted higher average economic growth than Indonesia as a whole, reaching 6.4 percent compared to the national average of 5.8 percent.

"The global economy has slowed down and so has Jakarta’s. Under such circumstances, I will focus on improving infrastructure in the city, such as public transportation and public housing," said Jakarta Governor Basuki "Ahok" Tjahaja Purnama.

Sectors mostly affected by the decreased growth include trade, hotels and restaurants, communication and transportation.

Meanwhile, the city’s inflation is expected to hit 4.5 to 4.9 percent in 2015, lower than the 8.95 percent last year. (fsu/ebf)

Editor: Yudho Winarto