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TEMPO.CO, Jakarta – Chief Economist of PT Bank Mandiri (Persero) Tbk. Andry Asmoro said that entering the year of the general election campaign (election), the political climate must remain stable so that investments continue to flow into Indonesia and support economic growth in 2024.

“If Indonesia can maintain political stability and the political climate, it can form expectations for people to keep spending. If government spending is good, investors can see Indonesia’s positive outlook,” said Andry after a press conference in Jakarta, Tuesday January 24, 2023.

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Investment performance will be very important and will become game changers economic growth in 2024, as it contributes about 30% of the total gross domestic product (GDP) in 2024.

Therefore, he continued, a good investment climate should be built with policy coordination among stakeholders, so that investors are more interested in investing in Indonesia than in other developing countries.

“This is what friends often forget and taken for granted that coordinating fiscal, monetary and banking policies will always give Indonesia a competitive advantage over other emerging countries,” Andry said.

Investments can also increase people’s purchasing power because the value of investments, especially those that go into manufacturing, can absorb a large number of workers.

“The absorption of labor will increase people’s purchasing power, and eventually consumption will also rise again, using investors’ money,” Andry said.

It forecasts that economic growth in 2024 will reach 5.04%. In addition to being supported by investment, economic growth is also supported by public consumption which accounts for around 54-55%.

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