Indonesia's economic growth is predicted to be stable at around 5 percent in 2023. One of the supporting factors is the expenditure of political parties (political parties) ahead of the election and the presidential election. Mandiri Sekuritas economist Leo Putra Rinaldy said the election, which was set for February 14 2024 or about two months ahead of the previous schedule for April 2024, is believed to bring blessings in the form of political party spending at least two quarters before the democratic party. "The impact of election spending will occur in the second semester of 2023. "The impact is different from the previous election because it is simultaneously the presidential election, the legislative election (legislative election) and the regional head. Next year, it could be bigger (economic growth)," he said at the Editor's Luncheon Generali, Tuesday (29/11). This optimism is not a figment of the imagination, considering the trend of national economic growth, said Leo, on top of the global trend which is currently being revised down by a number of international institutions, such as the IMF and the World Bank. In the second quarter of 2021, Indonesia's economic growth shot 7.1%. It will continue at 3.5% in the third quarter of 2021 and 5% in the fourth quarter of 2021. Furthermore, in the first quarter of 2022, Indonesia's economic growth will remain at 5%. Then, it will be 5.4% in the second quarter of 2022, and 5.7% in the third quarter of 2022. On the other hand, global economic growth is predicted to only be 3.2% in 2022 and decline to 2.7% in 2023.
"On the other hand, Indonesia's inflation was the first time below the UK, the United States (US) and other developed countries, even though Indonesia's inflation was trending up after the increase in fuel prices some time ago," explained Leo. That's why, he continued, the threat of recession is becoming more and more real for the economies of western countries, especially Europe. However, the threat of recession is far from Indonesia. "What about Indonesia? In a better footing compared to peers. We are much better. Because our economy is 60 percent influenced by public consumption," he said. Previously, Minister of Finance Sri Mulyani confidently claimed that the economy grew 6.6 percent based on Indonesia's real gross domestic product (GDP) from the first quarter to the third quarter. "Above pre-pandemic levels in 2019. This is a relatively strong and fast recovery compared to many other countries," he explained.
