REPUBLIKA.CO.ID, KEDIRI -- The Indonesian Chamber of Commerce and Industry (Kadin) of Kediri, East Java, predicted that the 2018 regional head of Kediri City election will affect the economic turnover in the city. Kadin said, it will bring a decline in local economy. 

"The year 2018 is a political year and it will affect the economic turnaround, because the government's budget has been slashed for elections and that's pretty big. The effect is that the rate could be 7-10 percent lower," said Vice Chairman of Micro, Small, Medium Enterprises and Cooperative of Kadin, Setyo Hadi in Kediri, on Tuesday (January 2).

He said, the economy possibly will be sluggish. The cut in government's budget will reduce fund to stir local economy.

"Regional budget (APBD) has an effect to drive the economic sector because the people-based budget is reduced, so the economy activities are also slowing," he said.

Kadin of Kediri recorded a total of 5,600 businesses of Micro Small Medium Enterprises (MSME). They are engaged in various sectors, including food, beverages, services, and various other businesses. However, food and beverages sector dominates. 

According to him, the economy in Kediri actually has been better. It happened by the support of local governments that provide a variety of licensing services, including cutting permit applications.

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In fact, the city government also provided an opportunity for MSME owners to participate in various exhibitions. The activity was held in every agenda of city. In addition to Kediri, the exhibition also took place in other cities. 

Meanwhile, at the end of 2017, the price of a number of basic commodities observed in Kediri had increased. Staple materials such as rice, large cayenne pepper, to eggs and a number of other staple goods.

In early 2017, prices of staples were still high. However, a number of basic commodities have decreased. For example, the type of bengawan rice cost Rp 11,300. It was decline compared to the previous week at Rp 11,500 per kilogram. 

Cooking oil from the previous Rp 12 thousand per 620 milliliters decreased to Rp 11,900. Chicken eggs are now Rp 23,500 per kilogram from the previous Rp 23,700 per kilogram. 

Although it is possible to affect the wheels of the economy, Setyo hoped business owners in Kediri could still survive. Owners of MSMEs could also still be able to produce. 

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