Election Activities Can Boost Economic Growth

Jakarta (Antara) - Minister of Finance Chatib Basri argued that political activities ahead of the 2014 general elections will boost economic growth of 6.3 percent set in the draft 2013 revised state budget (RAPBN-P). "Political activities recently began to increase ahead of the election, and the activities are quite affecting household consumption," he said here on Friday. According to Basri, household consumption will be increased towards the end of the year because of public tendency to shop and prepare for the elections, which will start in April next year. "They will buy food, uniforms, banners, and some other things. So, we expect public consumption will contribute 4.9 percent up to five percent from the targeted economic growth of 6.3 percent," he said. Basri further said that government will rely on household consumption that has contributed dominantly to the national economic growth since investment and export sectors are expected to grow slowly. "We need to be realistic. There's a tendency where investment remains to grow slowly as in the first quarter because imports of capital goods have decreased," he pointed out. Previously, during a meeting with government on Tuesday (June 4), House Budget Agency approved the assumed economic growth of 6.3 percent in the draft 2013 revised state budget. In fact, the government has tried to defend the proposed economic growth rate of 6.2 percent, with estimated economic growth rate reached only six percent until the end of the second quarter of 2013. (*)