The Implementation
It's certainly not easy to predict how the Indonesia economy will fare in 2018, especially because the global economy is not yet showing any signs of stability. Several institutions by the way have the forecast that the Indonesian economy will maintain its growth above 5% in 2018.
In June 2018, Indonesia will face local elections in 17 provinces by the way, followed by legislative and presidential elections in April 2019, there have been questions as to how the economy will fare in the election cycle and where the risks are. With such extensive political activities, campaign spending will soar. It will provide more household (in this sense campaign) consumption but at the same time will force investors to wait and see. However, i'm quite optimistic that from the election, the contribution of democracy to economic growth by 0,1% at least. We don't expect elections to lead to a slowdown in capex (capital expenditure) going forward.
And from banking, Â banking liquidity condition is quite ok, combined with the growth of banking capital by 23%. Trading in the capital market also continues to thrive positively. The Financial Services Authority (OJK) is also optimistic that credit growth in 2018 can be achieved. Â Â
