REPUBLIKA.CO.ID, JAKARTA -- Vice President Jusuf Kalla (JK) said 2019 general election would bring positive and negative effects on economic growth. He noted the election would trigger an increase in consumption as the election participants tended to spend money to buy their necessity.

“Political parties will spend money to get their campaign supplies and parties, so the consumption will increase,” said JK during business lunch titled "Be Wary of Economics in the Political Year" in Jakarta on Thursday (Aug 2).

JK believed consumption would increase although KPU has changed the system and rules of the campaign to be more minimalist. However, JK said the new rule has no effect on economic growth. In fact, the economy would continue to grow.

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JK looked back to the previous three general elections in 2004, 2009, and 2014. JK said the elections created positive and negative effects on the economy in the country.

In 2004, election made Indonesia's economic growth reached 5.4 percent higher than 2003. Then, in 2009 economic growth was decline not because of the election, but the global economic crisis.

Meanwhile, in 2014 economic growth had declined as the world's commodity plummeted. At that time, election did not contribute too much to economic growth.

"So, the election does not make the economy difficult, instead it triggers consumption," JK added.

As for investment, investors tended to wait and and see because they were still analyzing economic policies in the future. However, according to JK, election would not affect infrastructure investment. Meanwhile, investment in industry was more affected by US interest rates and national issues.

JK emphasized that elections in Indonesia were safer than in other countries. He was also optimistic that whoever wins the 2019 election will provide business and investment friendly policies.

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