SWA @ The eve of the general election (election) in 2014 is seen to provide an incentive for the Indonesian economy. Because, usually, in the future, expenditures, such as for a campaign, could push up domestic consumption. It then became one of the foundations of The Royal Bank of Scotland (RBS) in predicting economic growth in Indonesia, which is deemed able to reach 6.5 percent this year.
"We saw in 2013, Indonesia's growth rate to reach 6.5 percent," said Enrico Tanuwidjaja, RBS economist for Southeast Asia, in Jakarta, Thursday (04/18/2013).
Enrico Tanuwidjaja, RBS economist for Southeast Asia
Last year, the Indonesian economy grew only 6.2 percent. However, this year, according to RBS, economic growth could reach 6.5 percent. There are some things which the foreign bank is in predicting it.
First, the elections will take place in 2014. Both the increase in minimum wage workers. The increase in the minimum wage worker must encourage increased consumption. "It (wage increase) will provide support for customers to be able to boost private consumption spending," he added.
The second addition, spending on higher infrastructure also play a role as well, because the government and the private sector being intensively build some infrastructure, such as airports. "Government efforts towards the 2014 elections, the higher infrastructure spending, as well as an increase in the minimum wage of workers is likely to be a key factor in this growth, and we may see its impact in the third quarter and beyond," said Enrico. (EVA)
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