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When globe faces downturn, elections boost revenue

Source
Jakarta Post - April 2, 2009

Andra Wisnu, Jakarta – Djoko Hariyanto, a food vendor working just outside the House of Representatives building in Jakarta seemed quite content on Tuesday afternoon.

A massive convoy of Great Indonesia Movement Party (Gerindra) supporters had just stopped at his stall on their way to a rally at Senayan Stadium. "It is amazing. I sold four boxes of those small Aqua cups during their visit," Djoko cheerfully told The Jakarta Post.

Djoko is just one of the many recipients of a massive outpour of cash that businesses traditionally was looking during such a political campaign.

As the global financial downturn begins to hit Indonesia, the campaign season could be just the thing Indonesia needs to soften the blow.

There has been no exact tally of how much the campaign season contributes to the economy, but most business association leaders agree that despite the positive impact it has on sales, it does not actually contribute much. However, the fact there is a positive impact seemingly makes the idea of a global financial crisis less intimidating.

"I can't actually tell you how much the campaign season has helped, but there has certainly been an upward trend in sales of textile products," Benny Soetrisno, chairman of the Indonesian Textile Association said.

Textile producers may have the most to gain from campaign seasons, as parties hand out specialized party T-shirts and other political parephenalia for campaigns. The campaign season could boost textile producers' income by as much as 10 percent, Benny said.

"We have certainly been helped by the campaigns, but not much. I hope the financial crisis ends once the presidential election is complete," Benny said.

Separately, Rudy Sumampouw, Secretary-General of the Indonesian Retail Merchants Association (Aprindo), said retail business had also gained from the campaign season. "If the campaigns continues in this way, retailers in Indonesia should be pretty happy by the end of the general elections," Rudy said.

Rudy's optimism was not groundless. Campaign rallies require a large number of supporters, all of whom require drinks and other consumptions. "I think retailers' income could increase between 5 and 10 percent this campaign season," Rudy said.

This much is true at least for Djoko, who also sells small meals and other food products from his stall. Djoko claims to have made Rp 900,000 (US$78) during Gerindra's visit, a 50 percent increase from the Rp 600,000 he normally takes home.

When asked if the campaign season windfalls made it easier for him to face the global economic downturn, Djoko simply laughed. "I do wish it was like this every day," he said.

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