Jakarta, CNBC Indonesia – Indonesia’s democratic party is getting hotter. At least two presidential candidates have been officially endorsed by political parties, namely Anies Baswedan and Ganjar Pranowo. The market also reacted to the candidacy of the two as President of the Republic of Indonesia (RI) in 2024.
Chief Analyst Deu Calion Futures (DCFX) Lukman Leong said that his party supports choosing Ganjar Pranowo so that he can continue the program of Indonesian President Joko Widodo (Jokowi), who is currently in office.
“For me, it’s just Ganjar. As a cadre from the same political party as Jokowi, I hope he can continue Pak Jokowi’s success so far,” he told CNBC Indonesia, Wednesday (26/4).
Meanwhile, Senior Investment Information Mirae Asset, Nafan Aji Gusta, said that the election of the two candidates as the 2024 presidential candidate could provide certainty to the public, including investors, regarding the elected figures from each party.
“It seems that the euphoria related to the announcement of the Presidential Candidates is already known by the public so that the public appreciates it positively. The public is also a market player,” he said.
“The most important thing is that as long as investors see the figure of the presidential and vice presidential candidates, it is important that these candidates are able to implement policies that are pro stability, pro jobs, pro environment,” he said.
According to him, broadly speaking, the democratic party will be related to policies that aim to provide economic prosperity for the country. “There is a commitment to it regarding the interests of the nation and the state, in this case, people’s sovereignty is automatically fulfilled,” he added.
In addition, democratic parties that run conducively and apply the principles of honesty and fairness will also have a positive impact on the capital market and the Composite Stock Price Index (IHSG). So that it will raise investor confidence in the investment climate in Indonesia.
“It is important that the current government realizes this because of course with the creation of conducive political and security conditions, of course, investors will have more confidence in investing in the country,” he said.
Meanwhile, Director of Equator Swarna Capital Hans Kwee assessed that the democratic party could boost the consumption sector which would affect the national economy.
“In a political year, the consumption sector is interesting… then interest almost reaches the peak of the techno sector. Then the nickel and tin commodity sector. The JCI can reach 7,300 to 7,600,” he said when contacted.
On another occasion, Mandiri Sekuritas projects that 2023 economic growth will be colored by the excitement of preparations for the election year which will be held in 2024. Mandiri Sekuritas Chief Economist Loe Putera Rinaldy said that the political year will push the consumer sector back to life.
Leo explained, the effect of the political year starting in 2023 will boost the consumption sector. The reason is, in 2024 it will not only be held for the presidential election, but also simultaneous Pilkada elections in every province.
Leo estimates that this year’s economic growth will be at 4.9%, while private consumer growth will be at 5.2%.
“Simply put, for the national level, provincial level what is the campaign potential, after that we will total Rp. 119 to Rp. 270 trillion,” he said.
Leo detailed that the potential for campaign funds to contribute to Indonesia’s economic turnover is reflected in the political years of 2014 and 2019. The number of candidates competing for seats will affect the growth potential of the sector.
“There are 24 parties that will compete in 2024. So for 2024 candidates we will count from 230 thousand candidates who will fight for 19,700 seats,” he said.
Leo said that this year’s inflation will tend to be normal because factors that affect inflation such as the price of fuel oil (BBM) and VAT have been passed. We expect this is lower than before. Inflation is at 3.8%,” he said.
Stable inflation, said Leo, government food sector subsidies in 2022 will continue into this year. “The government is subsidizing strategic food ingredients. Luckily the program will be continued in 2023. So the inflation was because food inflation will be stable,” he concluded.
It should be noted, Anies Baswedan was announced as a presidential candidate by the Nasdem Party on Monday (3/10/2022). Following the announcement, the Composite Stock Price Index (IHSG) was closed in the afternoon weakened 0.44% to a level of 7,009.718. While the rupiah exchange rate was in the position of Rp. 15,293 per United States (US) dollar, or weakened 61 points (0.4%) from the previous trading day.
Meanwhile, when Ganjar Pranowo was named a presidential candidate by PDI Perjuangan on Friday (24/4/2023), the JCI was not traded due to the Eid holiday. However, after the Eid holiday was over, the JCI immediately accelerated 1.29% to 6,910.147. Meanwhile, the rupiah exchange rate closed trading with a positive performance at IDR 14,830/US$, or slightly strengthened 0.07% on the spot market.
(rob/ayh)
2023-04-26 09:08:41
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