2024 Indonesian General Election Expected to Boost Consumer Spending
Jakarta, July 20, 2024 - The upcoming simultaneous general election in Indonesia, which will be held on February 14, 2024, is expected to have a positive impact on the country's economy, including boosting consumer spending.
According to Josua Pardede, an economist from the Institute for Economic and Social Research (LPEM) of the Faculty of Economics and Business at Universitas Indonesia (UI), the general election will drive increased consumer spending, particularly by non-profit household organizations (LNPRT). This is due to the increase in campaign spending by political parties and the government.
"Campaign spending will drive increased consumer spending, particularly by LNPRTs," said Josua. "This is because campaign spending will be used for various purposes, such as transportation, accommodation, consumption, and others."
In addition, the general election will also drive increased government spending. This is because the government will allocate funds for the election, such as the procurement of logistics, goods, and services.
"Increased government spending will also drive increased consumer spending," said Josua. "This is because government spending will be used for various purposes, such as consumption, investment, and others."
Josua estimates that the increase in consumer spending due to the general election will reach 0.75% in 2023 and 1% in 2024. This increase in consumer spending will have a positive impact on Indonesia's economic growth.
"Increased consumer spending will boost Indonesia's economic growth," said Josua. "This is because consumer spending is a major component of gross domestic product (GDP)."
However, Josua also warned that the positive impact of the general election on Indonesia's economy will only be temporary. This is because the increase in consumer spending will decrease after the election is over.
"The positive impact of the general election on Indonesia's economy will only be temporary," said Josua. "This is because the increase in consumer spending will decrease after the election is over."
To maintain the sustainability of Indonesia's economic growth, Josua suggested that the government should issue appropriate policies to boost consumer spending in a sustainable manner. These policies could include increasing purchasing power, such as through subsidies and social assistance.
"The government needs to issue appropriate policies to maintain the sustainability of Indonesia's economic growth," said Josua. "These policies could include increasing purchasing power."