By: Alfisyah Kumalasari) *
The chaos after the KPU announced the results of the presidential election recapitulation on 21-22 May 2019 turned out to have an impact on the economic sector nationally, the unconstitutional action resulted in a weakening of the composite stock index (IHSG), although the following day had strengthened again.
The increase in the IHSG at the opening of the stock exchange on Thursday, May 23, showed a recovery in the Indonesian economic situation, and we hope that such a situation will continue or even better day by day.
JCI is one measure that can describe investor perceptions of economic conditions. Of the several things that determine the index, one of which is the political stability and security of the country concerned.
The riots that were held – gadang was a people power effort that had an impact on the micro and macro economy. For example, in the Tanah Abang Market, which should have been harvested in the coffers of the rupiah ahead of Eid al-Fitr, it had even suffered losses due to the riots. Therefore, the chaos that had occurred would certainly be a great learning so that it would not repeat itself.
When the riots broke out, shops in the Sarinah shopping center opposite the Bawaslu building were forced to close, one of the department store employees in Sarinah claimed to be worried about the mass action that occurred until early morning could lead to looting.
The President Director of Sarinah Gusti Ngurah Putu Sugiarta Yasa had not been able to calculate the amount of losses due to the closure of the Sarinah shopping center at the moment before Lebaran. On normal days the average turnover reaches Rp. 400 – 500 million.
In addition, traders in Tanah Abang Market also do not dare to carry out their trade activities, in one day the largest textile wholesale market in Asia is paralyzed, there are around 14 thousand traders in the Tanah Abang Market.
When a country is experiencing riots, investors are still wait and see until the political conditions subside. Only then do investors return to their activities.
In this context, we should appreciate the steps of presidential candidate number 02 who would like to submit his dissatisfaction to the Constitutional Court, not to continue the riots that occurred in Central Jakarta. This step turned out to cause the JCI to strengthen.
After various electoral processes starting from the registration of candidates to the official announcement are completed, the government in the new cabinet will have to fix the nation’s economy as a priority, because after all the Indonesian people are facing economic problems that are not light amid global competition. Not to mention global trade has decreased due to trade wars between the United States and China.
In addition, the large population of Indonesia certainly produces a large workforce, so that Indonesia needs large numbers of jobs. For that we need a massive investment to be able to turn the wheels of the economy in Indonesia.
But on the other hand, investors will certainly think again to invest if the security of a country and its political conditions are unstable.
Chairperson of CT Corp Chairul Tanjung explained, after the General Election economic data showed improvements, such as those that occurred in 2009 and 2014. Unlike the previous two years, according to Chairul this year business people were waiting for certainty.
“Always after economic elections, economic data shows that there has been an improvement after the election, but now it is rather unique. 2009 the trend is relatively good, 2014 is better, but 2019 is rather lacking, why, because of that economic actors, investors want certain, want certainty, “said the man who is familiarly called the CT.
Coordinating Minister for Economic Affairs, Darmin Nasution, assessed the negative trends that emerged at this time to be short-term, mainly due to demonstrations resulting from the Presidential Election, so that it was hoped that stable political conditions would certainly be a magnet for investors to Indonesia.
The government should also try to resolve the country’s financial deficit by increasing the flow of capital entering Indonesia. One way to do this is to increase the attractiveness of domestic investment, so that investors are interested, willing and invest their capital in Indonesia.
In investment promotion by the Investment Coordinating Board (BKPM) since the 1980s, political and security stability has always been a promotional material that is put forward in addition to the strong economic fundamentals.
) * The author is a socio-economic observer
