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Single-round presidential election to boost economic growth, says Central Bank chief

Jakarta Globe - March 5, 2024

Arnoldus Kristianus, Jakarta – Bank Indonesia Governor Perry Warjiyo expressed confidence on Tuesday that the economy would grow by over 5 percent this year, assuming the presidential election concludes without the need for a runoff.

As the nation gears up for another nationwide election in November to elect governors, mayors, and regents, the swift conclusion of the presidential election is anticipated to alleviate pressure and minimize disruptions stemming from political rivalries.

"We expect economic growth for this year to reach 5.1 percent now that we have a single-round presidential election," Perry said during a seminar in Jakarta.

Defense Minister Prabowo Subianto is projected to secure an outright win in the three-way election on February 14 with around 58 percent of the vote, eliminating the possibility of a runoff.

"It's worth noting that the Indonesian economy is still operating below our potential output, and it continues to gain momentum over time. Economic growth may reach its peak in 2027, but there will still be room for growth," he added.

Perry urged businesses to materialize their investments and actively contribute to the national economy.

"There is no point in delaying investments this time when the chance to generate profits is higher than before," he said.

Government data reveals that the value of domestic investment surged by 47.6 percent, reaching Rp 674 trillion ($42.8 billion) in 2023 compared to the previous year. Meanwhile, foreign direct investment stood at the equivalent of Rp 744 trillion last year, representing a 52.4 percent year-on-year increase.

Source: https://jakartaglobe.id/business/singleround-presidential-election-to-boost-economic-growth-says-central-bank-chie