REPUBLIKA.CO.ID, JAKARTA -- The Indonesian Institute of Sciences (LIPI) calls on various parties to maintain the momentum of economic development in the midst of the upcoming 2019 general elections and the uncertain dynamics of the global economy. LIPI Head for Economic Research Center Agus Eko Nugroho reminded that global linkages in the economy, changes in the global trade landscape, and movement of capital and finance can be a shock to the domestic economy.
Nugroho said the increase in the US interest rate was considered to put pressure on the Indonesian economy, among others, on the depreciation of the rupiah exchange rate and the Indonesian trade balance deficit.
"The democratic feast of the 2019 general elections will perhaps increase political tension and have policy implications, such as the tendency of a strong policy to maintain macroeconomic stability," he remarked during a discussion here on Thursday.
Observing the importance of 2019 at the state level, he affirmed that the national economy is expected to grow quite optimistically, with the assumption of improved global uncertainty and controlled political tension.
In the meantime, Bank Mandiri economist Andry Asmoro stated that President Joko Widodo's government and monetary authorities in the country had been quite responsive to changes in global economic conditions. According to him, economic circles generally viewed the response by the government related to fiscal policy as a positive thing.
"I want to convey how banks generally perceive the Indonesian economy, where the government and the monetary authorities are very responsive to the challenges of global change," Asmoro stated at a discussion in Jakarta recently.
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