Jakarta: DBS Bank economist Masyita Crystallin has argued that the 2019 simultaneous general and presidential elections would not hinder this year's investment growth.
"Usually investors take a wait and see approach during an election year. I don't see it this year," the economist said here on Tuesday.
"Our policy is still prudent in this election year. It is still better compared to other countries," she noted.
Indonesia will hold its first ever simultaneous general and presidential elections on April 17. Voters will elect the president, vice president as well as members of national and local legislative bodies on the same day.
Domestic and foreign direct investment realization in Indonesia reached Rp721.3 trillion in 2018. It grew by 4.1 percent compared to the previous year.
Foreign direct investment realization reached Rp328.6 trillion in 2018. It rose by 8.8 percent compared to the previous year.
Amid rising global economic uncertainty, the country's economy grew by 5.17 percent in 2018. It was Indonesia's highest annual growth in five years.
The country's economy is measured by GDP on the basis of the current price reaching Rp14,837.4 trillion and GDP per capita reaching Rp56 Million or US$3,927.
In terms of production, the highest growth was achieved by Other Service Business Fields at 8.99 percent. From expenditure side, the highest growth was achieved by the Non-Profit Institution Consumption Component Serving Households (PK-LNPRT) at 9.08 percent.
Quoting a report from Bank Indonesia (BI), Global economic growth continues to moderate with less financial market uncertainty. China’s economy is experiencing slower growth as a result of postponed fiscal stimuli and the simmering trade tensions with the United States.
At home, solid economic growth is predicted in the first quarter of 2019 on the back of domestic demand. Robust consumption growth is expected to endure, supported by maintained public purchasing power and consumer confidence, fiscal stimuli through social spending, as well as election spending.