Elections Results to Determine Pace of Economic Growth

Yogyakarta (Antara) - The results of the legislative and presidential elections this year will determine the pace of Indonesia's future economic growth, stated an economic observer from the Gajahmada University. "The economic growth will be boosted if the results of the legislative and presidential elections manage to meet the expectations of the public and market. If the results are contrary to this, then the economy might slow down," observer Tony Prasetyantono noted here on Tuesday. The lecturer of economics and business of the Yogyakarta-based state university pointed out that if the results of the 2014 elections meet the market expectations, they can boost both domestic and foreign investors' confidence, which will boost investments in the country. "If the elections are held smoothly and meet the market expectations, then a huge capital inflow is expected, which will help in strengthening the rupiah exchange rate," he claimed. Indonesia will hold legislative elections on April 9, which will later be followed by a presidential election on July 9. Although the economic growth will possibly get a boost from the results of the elections, Tony still believes that the growth will stay below six percent. He forecast that Indonesia will only be able to achieve six percent growth in 2015. "Until the end of 2014, I think, it will still be around 5.8 percent, which is close to the last year's figure. This is because we will only be able to spur growth after the elections are held in July," he explained. Apart from the results of the elections, the financial crisis in the US and Europe, meanwhile, will continue to affect the country's economy in the long term, he added. Tony remarked that irrespective of whoever meets the public and market expectations, the future president must prioritize competitiveness by intensifying the development of infrastructure and human resources, adding that these two aspects will have to be given top priority by the future president. (*)