Vice President Says Indonesia’s Economy to Remain Stable Ahead of Elections

Erwida Maulia

Vice President Boediono on Thursday allayed fears of disruptions in Indonesia’s economic growth as the domestic political situation is expected to intensify ahead of next year’s elections. 

Boediono said Indonesia was projected to maintain its economic growth at around 6 percent over the next few years, supported by robust demand in domestic consumption and investment sectors.

The political situation ahead of the 2014 legislative and presidential elections will not change the track of the economy, Boediono, a former governor of Bank Indonesia, said.

“For now, 10 months into the election year, only gradual but steady reform will be possible. The present government is determined to do just that,” Boediono said in his keynote speech during The Economist’s Indonesia Summit 2013 in Jakarta.

“Any drastic policy reform agenda will not likely generate enthusiastic responses as political leaders and the public alike do not want to rock the nicely cruising boat,” he added.

Recent bribery scandals allegedly involving top political party leaders, such as former Democratic Party chairman Anas Urbaningrum who has been declared a suspect in the Hambalang Sports Stadium scandal, also won’t affect the growth, the vice president said.

“Indonesian politics have been stable, in spite of all the sideshows,” he said.

Boediono explained that Indonesian consumers’ confidence would keep supporting the growth, citing recent survey results saying that Indonesians are generally confident about the future, “bordering on complacency.”

He added he believed the economic situation in Europe and the global economy in general would improve next year, which means Indonesia could expect to enhance its export performance next year.