Jakarta Asian Games to Cost $3.2b to Indonesia Economy

This year’s Asian Games in Jakarta and Palembang will cost $3.2 billion to the Indonesian economy, a new survey has estimated.

Indonesia’s National Development Planning Agency (Bappenas) claims Jakarta Palembang 2018 will have a multibillion dollar impact on the local economy along with another major event to be held in the country this year, the meeting of International Monetary Fund and World Bank Group in Bali shortly after the end of the Asian Games, Insidethegames wrote.

But it is the Asian Games which will have the greatest impact, the study claims. Most of the money is being spent on infrastructure projects.

Bambang Brodjonegoro, the head of Bappenas, claimed a total of $2.4 billion will be spent on infrastructure development surrounding the Asian Games.

Projects include the Palembang light rail transit connecting Sultan Mahmud Badaruddin II International Airport and Jakabaring Stadium Complex and the renovation of Gelora Bung Karno Stadium in Jakarta.

The Palembang LRT is estimated to cost $676 million. It is estimated that foreign visitors coming to Indonesia to watch the games, due to take place between Aug. 18 and Sept. 2, will spend up to $245 million on accommodation, transport and medals.

On average, a foreign visitor in Indonesia spends $100 per day, previous studies have shown.

The head of the planning agency also sees several non-economic benefits as a result of the games, including enhanced social cohesion and the opportunity for local human resources to improve their skills as they gain experience from an international event.

Brodjonegoro claimed that the Asian Games will raise the profile of Indonesia on the international stage.

  More Promotion Needed

More promotion is needed to help ensure this year’s Asian Games in Jakarta and Palembang are a success, Indonesian President Joko Widodo (Jokowi) has told organizers.

Jokowi reportedly expressed concern during a Cabinet meeting over a lack of promotion both locally and internationally for the games, due to open on August 18 and last until Sept. 2.

“I want the issue to be addressed,” he reportedly said during the meeting. “Perhaps there should be a routine marketing campaign of the Asian Games every two weeks for local and international media.”

Erick Thohir, chairman of Jakarta Palembang 2018, promised he would devise a new strategy to ensure the games were promoted properly.  

“The president wants the promotion to be improved and not only involve the committee, but also regional administrations and various ministries so that the public can be gripped by Asian Games fever,” he told the Jakarta Post.

Thohir revealed that $479 million had been allocated for the games but 90% of that had been spent on ensuring Indonesia was ready to host the event for the first time since 1962.

Indonesia was only awarded the Asian Games in July 2014 following the withdrawal of Vietnam for financial reasons.

More than 10,000 athletes from 45 countries are expected to compete in 462 events in 40 sports.