Consumption in 2023 Grows Ahead of General Elections Economist

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TEMPO.CO, Jakarta – Institute for Development of Economics and Finance (Indef) senior economist Aviliani on Thursday said the “political year” which comes ahead of the 2024 General Elections (Pemilu) will increase public consumption, which will contribute to growing the national economy. 

“The political year tends to see a lot of spending made by political parties, there will be an increase, at least from the funds spent by political parties and candidates who are running for DPR (House of Representatives) candidacy,” said Aviliani in Jakarta on March 2.

In an online public discussion dubbed the “Economic Challenges in the Year of Politics,” the Indef senior economist said political party spending contributes to the increase in consumption ahead of the General Elections. Such spending will go to the preparations for a candidate’s campaign. 

Positions on offer during this election period include the presidential and vice presidential races and also positions of governors, mayors, deputy mayors, regents, and deputy regents. The public will also elect representatives in the regional and national House of Representatives. 

Aviliani said in the last two general elections, the economy was able to be maintained at 5.01 percent in 2014 and 5.02 percent in 2019. 

“Our society tends to be much more mature because elections are considered something normal,” she said.

However, she said that in an election year, the important thing to do is to ensure the government’s policies are sustainable so as to support investors to invest. 

“People are usually afraid of investing because usually when they start changing the president, the policy will also change. This really needs strengthening in our Bappenas,” she said.

Aviliani said the programs that existed in the previous government should be continued in the next government with a new leader so as to provide certainty for investors.

“The mission should not be different for each president but how to continue existing programs. This may need to be convinced to investors,” she said.


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