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Malang City's Welfare Situation is Positive According to BPS Release

Malang, (malangkota.go.id) – The Central Statistics Agency (BPS) of Malang City routinely delivers the Statistical Release News (BRS) every month. Unlike usual, where BPS only releases the consumer price index/monthly inflation, the BRS release which was held online on Tuesday (1/3/2022), the Head of the Central Statistics Agency of Malang City Erny Fatma Setyoharini, SE., MM also released the development of Malang City tourism in January 2022, the gross regional domestic product (GRDP) of Malang City 2021, and the Gini ratio of Malang City 2021.

Head of the Central Statistics Agency of Malang City, Erny Fatma Setyoharini

Erny revealed that in February 2022, Malang City experienced inflation of 0,18 percent for month to month (mtm), for calendar year inflation (February 2022 to December 2021) of 0,70 percent. While year on year (yoy) inflation was 2,41 percent. When compared to inflation values ​​in East Java and nationally, inflation in Malang City was the highest.

"When viewed from the eleven expenditure groups, the one that contributed the highest inflation in February was household equipment, tools, and routine maintenance, which was 1,83 percent with an inflation contribution of 0,11 percent," said Erny.

Next, he said, there is personal care and other services at 1,54 with an inflation contribution of 0.09 percent. While food, beverages and tobacco actually experienced deflation of -0,50 percent. For general inflation in the energy component, there was inflation of 0,08 percent while for the food component there was deflation of -0,84 percent.

Furthermore, Enny mentioned that the 10 main commodities contributing to inflation in February 2022 in Malang City were cars, powdered/liquid detergent soap, broiler chicken, shallots, security costs, tissues, laundry freshener/softener, shampoo, mango, and banana. Meanwhile, the main commodities contributing to deflation were cooking oil, broiler chicken eggs, cayenne pepper, air transportation, tilapia fish, headscarves/hijabs, fresh shrimp, papaya, rice, and watermelon.

"Data related to tourism levels, especially the development of hotel room occupancy rates in Malang City in January 2022. Of the 100 star-rated hotel rooms available in Malang City, an average of 43 to 44 rooms are occupied each day. Meanwhile, the Average Length of Stay (ALST) of Star-rated Hotels in Malang City is 0,14 points lower than the ALST in East Java and 0,29 points lower than the ALST in Indonesia," explained the bespectacled woman.

The Head of BPS Malang City also conveyed the economic growth rate of Malang City in 2021. National and regional economic growth began to improve in 2021, after contracting quite high in 2020 due to the Covid-19 pandemic. Both nationally and regionally at the provincial level and Malang City, there was an economic contraction.

"However, in 2021, there has been an economic recovery indicated by economic growth that is no longer contracted due to adaptation in the new normal era that began in 2021, so that it can support economic recovery. The economy of Malang City has grown by 4.21 percent compared to 2020. Economic growth in Malang City is higher than at the national level which grew by 3,69 percent and East Java at 3,57 percent," he said.

According to BPS data released today, Malang City ranks fifth with the highest economic growth rate with economic growth of 4,21 percent, the same as Sidoarjo Regency. When viewed from the business sector side, the structure of Malang City's GRDP in 2021 in general has not experienced any significant differences from 2020. The largest economic contributors in Malang City are respectively from the trade sector (29,09 percent), the manufacturing industry (26,72 percent), and construction (12,39 percent).

"Meanwhile, the growth rate of GRDP based on constant prices for each business in Malang City, the highest sectoral growth was achieved by wholesale and retail trade (8,21 percent), followed by transportation and warehousing (8,01 percent), and health services and social activities (5,45 percent)," he continued.

In terms of expenditure components, more than half of Malang City's GRDP comes from household consumption expenditure (67,77 percent), gross fixed capital formation (33,44 percent), government consumption expenditure (3,24 percent). When viewed from the GRDP growth rate at constant prices in 2021, the highest growth was experienced by consumption expenditure of non-profit institutions serving households (13,03 percent), household consumption expenditure (2,55 percent), and gross fixed capital formation (1,55 percent).

This release also explains the Gini ratio of Malang City. To measure the inequality/gap in population expenditure, BPS uses the Gini ratio indicator and expenditure distribution according to the World Bank. In 2021, the Gini Ratio of Malang City was 0,407. There was an increase of 0,012 points compared to 2020. The Gini Ratio of Malang City ranked first among the regencies/cities in East Java, and was also above the Gini ratio of East Java Province.

Malang City often ranks highest in its gini ratio in East Java. The high gini ratio in Malang City is formulaically caused by the large proportion of expenditure of the 20 percent most prosperous population which occupies the highest position in East Java and is supported by the low proportion of expenditure of the 40 percent population with the lowest level of welfare which is also the lowest in East Java.

"The people of Malang City in 2021 experienced moderate inequality. However, it is still at a reasonable level with an advanced urban status among regencies/cities in East Java. The low poverty rate and the second highest average per capita expenditure in East Java provide a positive picture of the welfare situation in Malang City," he concluded. (ari/ram)

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