As many would have known, a general election will be held in Indonesia on the 17th of April 2019 and for the first time in the Indonesian history, the presidential election will be held on the same day with over 190 million eligible voters. In this presidential election, the incumbent Indonesian President Joko Widodo, commonly known as “Jokowi”, will be running for re-election with senior Muslim cleric Ma’ruf Amin as his running mate against former general Prabowo Subianto and former Jakarta deputy governor Sandiaga Uno for the five year term between 2019 and 2024. In this Article, you will be provided with how the Indonesian presidential election affects the Indonesian economy.
History of Indonesian Economy
Since the late of 1980s, Indonesia has made significant changes to its regulatory framework to encourage economic growth. The growth was financed largely from private investment, both foreign and domestic. In the year between 1997 and 1999, new foreign investment approvals fell by almost two-thirds and this crisis had highlighted areas in where further reforms was needed. Under the Suharto era, Indonesia had moved toward private provision of public infrastructure, including electric power, toll roads, and telecommunications. The 1997 crisis brought to light serious weaknesses in the process of dispute resolution, however, particularly in the area of private infrastructure projects.
From 1990 to 2010, Indonesian companies have been involved in 3,757 mergers and acquisitions as either acquirer or target with a total known value of $137 billion. In 2010, 609 transactions have been announced which is a new record. Numbers had increased by 19% compared to 2009.
In 2011, the Indonesian government announced a new Masterplan (known as the MP3EI, or Masterplan Percepatan dan Perluasan Pembangunan Ekonomi Indonesia, the Masterplan to Accelerate and Expand Economic Development in Indonesia). The aim was to encourage increased investment, particularly in infrastructure projects across Indonesia.