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Foreign Investments on Hold Until Election Over

Translator

Editor

14 February 2017 12:22 WIB

TEMPO.CO, Jakarta - Indonesia will have a regional election tomorrow, February 15. All eyes will be on the Jakarta Gubernatorial Election especially. The political event is expected to influence sentiments in financial markets, as well as investments in the real sector. 

"Many foreign investors are postponing their investment plans; waiting for the election result," Bank Permata economist Josua Pardede told Tempo on Tuesday, February 14.

Josua said investors are taking into account how the election results may affect their future business plans and sustainability. "As well as mass protests that may block foreign investments from entering Indonesia," he said. 

Additionally, he said, investors are hoping the election to run smoothly. 

Josua said the election will not have much effect on household consumption. However, he said it will increase the spending of non-profit organizations that serve households. 

GHOIDA RAHMAH

Economy


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