Institute for Economic and Social Research – Faculty of Economics and Business – Universitas Indonesia

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Macroeconomic Analysis Series: Indonesia Economic Outlook 2024

Tuesday November 7th, 2023

perekonomian pemilu

Political climate and global monetary condition will be two of the key themes that will affect Indonesian economy 2024. The upcoming general election may have mixed effects on growth and other macroeconomic indicators in 2024. On one hand, Indonesia will carry out its first ever simultaneous elections (Pemilu Serentak) from national to city level; consequently stimulate massive money injection to the economy induced by campaign spending and other polically driven public expenditure. Hefty money multiplier will boost domestic consumption throughout 2024 as the subnational level election might be held near the end of next year. On the other hand, the long transition period until the next administration assume the office will prolong the wait-and-see sentiment by private sector and might stun the growth of credit and investment.

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