BCA Economist: MK Ruling on Elections Dispute Provides Certainty to Investors

TEMPO.CO, Jakarta - Bank Central Asia's (BCA) chief economist David Sumual commented on the Constitutional Court's ( MK ) ruling against all appeals in the presidential election dispute case. David said that the MK's ruling provides legitimacy or legal certainty on the results of the 2024 elections, thus providing investors with certainty on Indonesia's political situation.

"The hope is that capital expenditure will increase and business players will no longer wait to invest," David told Tempo on April 22.

Furthermore, David said that Indonesia's economy at the moment is more influenced by external factors. The rupiah depreciation, he said, was not caused by the political situation—in particular the dispute over the election results, but an impact of the geopolitical tensions in the Middle East.

Likewise, Coordinating Minister for Economic Affairs Airlangga Hartarto also blamed the Middle East conflict for the rupiah's slump. Since the beginning of the year, the Garuda has depreciated by 5.16 percent to trade for Rp 16,235 per US dollar. Still, Airlangga said Indonesia's situation is still better than some other countries.

Airlangga also hopes that the MK ruling on the election results dispute will provide certainty to investors so that they will be confident to invest in Indonesia. "Investors no longer have to wait as a decision has been made," Airlangga said when met at his office in Central Jakarta on Monday.

According to Airlangga, the Constitutional Court's decision confirmed the end of the 2024 presidential election. He congratulated Prabowo Subianto and Gibran Rakabuming Raka as the elected president and vice president.

Airlangga urged all citizens to work together and support the next government, especially at a time when the geopolitical situation is not favorable for Indonesia.

RIANI SANUSI PUTRI

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