Looking for Solutions Amid Political Change in Local Elections 2018: What’s Next for the Indonesian Economy?

Sandiaga Uno, leading economists discuss the impact of the 2018 local elections at a recent INDEF seminar

By Peter Sean Lie
Sunday, August 26, 2018

Economic growth and the direction of the Indonesian economy following the 2018 local elections were the focus of a recent Institute for Development of Economics and Finance (INDEF) event.

The Indonesia Mid-Year Economic Outlook Seminar, under the theme “Economy after the Local Elections,” looked at Indonesia’s economic condition and outlook in the aftermath of the elections and resultant change in leadership.

Deputy Governor of Jakarta Sandiaga Uno, who has since become the vice presidential candidate under the ticket headed by Prabowo Subianto, spoke at the July 31 event, along with economists and analysts from a number of institutions.

INDEF Director Enny Sri Hartati started with the opening remarks, followed by a keynote speech from INDEF Senior economist Didik J. Rachbini, who talked about preserving national priorities in the midst of political transitions.

As a local leader, Sandiaga spoke about his targets of 7 percent economic growth and Rp 1,000 trillion in investment for Jakarta.

“Last year was a political year because of the Jakarta Gubernatorial Election. This year is a political year because of the local elections,” he said. “Next year is obviously a political year. Don’t make ‘political year’ an excuse for a bad economic performance.”

The discussion continued, focusing on an evaluation of the Indonesian economy in the first semester of this year and the future outlook.

INDEF economists said they hoped the results of the discussions would be used as a reference for the Indonesian government when making economic policies in the future.

INDEF is an independent, autonomous research institution established in August 1995 in Jakarta. Its main activities are to undertake research on a wide range of economic and financial issues, to generate policy debates and public participation, and to enhance the search for viable solutions to Indonesia’s complex social and economic problems.

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