Smooth election boosts economic sentiment: Experts<\/p>\n
Dadan Wijaksana, The Jakarta Post\/Jakarta<\/p>\n
Waves of optimisms greeted the trouble-free runoff vote on
\nMonday, with experts hailing the smooth process as a powerful
\nstarting point towards the much-needed revival of investor
\nconfidence in the economy.<\/p>\n
The greatest message that the vote can convey to the business
\ncommunity, domestic and international, is that democracy indeed
\nsuits Indonesia, and thus provides guarantees of greater
\npolitical stability, according to businessmen, a top economist
\nand a government official on Monday.<\/p>\n
The team of Susilo Bambang Yudhoyono and his running mate
\nJusuf Kalla look to win in a huge landslide over incumbent
\npresident Megawati Soekarnoputri and her running mate Hasyim
\nMuzadi for the leadership of the country over the next five
\nyears. The provisional tally, with some 10 percent counted as of
\nMonday night had Susilo leading by a comfortable margin with 59
\npercent of the vote.<\/p>\n
The official announcement, however will not be for another two
\nmore weeks, by the General Elections Commission (KPU).<\/p>\n
\"But regardless of who wins, I find the process itself --
\nwhich so far has been peaceful, as a strong capital for the
\nbusiness community in terms of confidence.<\/p>\n
\"Especially as what we're seeing is a huge leap in democracy,
\nfrom the old regime to the direct presidential system,\" Djimanto,
\nsecretary-general of the Indonesian Employers' Association
\n(APINDO) said.<\/p>\n
Djimanto said the runoff election should put an end to the
\nlingering uncertainty among the business community here and
\nabroad.<\/p>\n
Chatib Basri, deputy director at the Institute for Economics
\nand Social Research at the University of Indonesia (LPEM-UI)
\nagreed.<\/p>\n
\"This sends a strong signal to investors, especially
\ninternational businesspeople, that Indonesia can, and is able to,
\ncope with a crucial process of democracy without disrupting
\npolitical stability,\" Chatib said, while emphasizing that foreign
\ninvestment was an important element of higher economic growth.<\/p>\n
Despite the optimism, Djimanto and Chatib warned of a
\nherculean economic task awaiting the next government.<\/p>\n
\"There is no such thing as a quick fix, due to the complexity
\nof the problems gripping the economy.<\/p>\n
\"This momentum will only be maintained if the next government
\nintroduces a string of policies within the first 100 days in
\npower. That could show that they are serious about fixing the
\neconomy,\" Chatib said.<\/p>\n
On investment, the government could start by instantly
\nremoving all the rulings that are detrimental to investment such
\nas exorbitant severance pay for fired workers, the lengthy
\nbureaucracy for obtaining business licenses, the taxation system,
\netc. \"Those things can be implemented soon by the government, yet
\nthe message will be powerful to the investors.\"<\/p>\n
Djimanto said in principle, what the business community needed
\nwas a leader who opted to provide a clear down-to-earth action
\nplan, rather than lip-service approaches. \"This is what's been
\nlacking. In 2003 for instance, the government declared it
\n'Investment Year', and boasted of incentives to increase
\ninvestment. But, still to this day, we have seen no results.\"<\/p>\n
Subronto Laras, president of automaker Indomobil Suzuki
\nInternational, said it did not matter who wins as long as the
\ngovernment listened and acted upon the needs of the business
\ncommunity.<\/p>",
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