REPUBLIKA.CO.ID, JAKARTA -- Chairman of the National Economic Committee (KEN) Chairul Tanjung explained, investors are still waiting and watching if the 2014 presidential election would run smoothly. 

Year 2014 would be judged as a challenge for the Indonesian economy. There were three decreased cycles would be happened at the same time; commodity, credit and political cycles.

This combination became a major inhibitor of economic growth and the threat to the stability of the Indonesian economy in 2014, he said.

"Investors will see whether the elected President in 2014 will be a pro and know about the economy or not," he said, in Jakarta, Tuesday (3/12).

He argued, if the 2014 election went smoothly and Indonesia produced a good leader, then the euphoria of confidence would drive the investment and the flow of funds. The phenomenon would support rupiah and stock market recovery in the fourth quarter of 2014.

Despite the challenges, there are two things that make Chairul optimistic about Indonesia's ability to pass through it.

"Indonesia's demographic bonus, with its large population and large number of productive population, will make our economy continued to grow, though not as in previous years."

Chairman of the Indonesian Employers Association (Apindo) Sofjan Wanandi said that time before the election is a few months away.

In the short time, he did not see positive signs of the government policy to confront the existing state balance of payments position.

"We know very well that the deficit balance of payments occurred in the oil and gas sector. Rather than making new economic packages, it should be better for government to solve oil and gas's problem." he said.

Last August economics packages have not been implemented. "I want this package to be quickly implemented and KEN should accelerate this breakthrough," he said.

He asserted, on the political uncertainty, Government should be careful on figuring economic estimates. Currently, the country encountered production decline, if the problem would not be immediately anticipated, he worried about further declination in production. "Despite interest rise, we did not dare to raise prices significantly," he said.

Ed: A.Syalaby Ichsan

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