No major changes expected after elections<\/p>\n
Dadan Wijaksana, The Jakarta Post, Jakarta<\/p>\n
The investment community hopes the general election will
\nresult in a winning party that can promote stability and
\ncertainty, which is crucial to ensure the current pace of
\neconomic reform, experts say.<\/p>\n
The last thing the country needs is an abrupt change in terms
\nof policy, as it could shake investors' confidence and make the
\nmarket nervous, Citigroup economist Anton Gunawan said on
\nTuesday.<\/p>\n
Citigroup is one of the leading global investment banks
\noperating in the country that manages huge amount of investments
\non behalf of domestic and international investors.<\/p>\n
\"The business sector, based on what we've garnered from our
\nclients, puts stability on top of everything, which then brings
\ncertainty. It means businesses can continue, plus improvements
\nhere and there along the way -- but gradually, not drastically,\"
\nAnton told The Jakarta Post.<\/p>\n
A gradual change should give clear direction as to where the
\neconomy, which has just started to recover from the late 1990s
\neconomic crisis, was moving and also give more predictability to
\ndoing businesses here, Anton added.<\/p>\n
A stock analyst at a local securities firm, who asked for
\nanonymity, agreed. He said that, judging from the political map,
\nit was likely that whoever won the elections would bring about
\nstability and certainty.<\/p>\n
\"Currently, at least based on various surveys, those who have
\na fair chance of winning the elections is not far from the top
\nfive parties, those that did well in the 1999 elections.<\/p>\n
\"So, in order to maintain the status quo, I don't think there
\nwill be major changes proposed by those parties, which would suit
\nthe market well,\" he said.<\/p>\n
As voting day for legislative seats is scheduled for April 5,
\nthe country is entering the second round of indoor campaigns.<\/p>\n
Concerns that the campaigns could turn violent have so far
\nproved unfounded.<\/p>\n
The decline in the Jakarta Stock Composite Index in the past
\nweek was caused more by the gloomy global sentiment, following
\nthe terrorist attacks in Madrid.<\/p>\n
The two experts agreed that although some parties planned
\ndrastic changes to the country's economy, their slim chance of
\nwinning the elections meant it was unlikely their programs would
\nsee the light of day.<\/p>\n
Anton cited as examples some Islamic-based parties that were
\ncalling for a sharia economy, which would have a massive impact
\non Indonesia's economy.<\/p>\n
\"But even if they unite and form a coalition, which many
\npolitical observers find highly unlikely, I still doubt they
\ncould win the elections,\" he said.<\/p>\n
The United Development Party (PPP), the Reform Star Party
\n(PBR), the Prosperous Justice Party (PKS) and the Crescent Star
\nParty (PBB) are among those that have include sharia in their
\nplatforms, including in their respective economic programs.<\/p>",
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"sponsor": "Okusi Associates",
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