'Business as usual' during six-month transition

Winny Tang


Business player are confident that the six-month transition period between the current administration and the next will not act as a hindrance in their efforts to expand their businesses, as they believe that the upcoming elections will run safely and smoothly

The general election will be held on 17 this year, while the inauguration of the president and vice president is scheduled for Oct. 20. The six-month gap in the previous presidential election on July 9, 2014. That year, the inauguration was held on Oct 20.

Shinta Kamdani, the Indonesian Employers Association (Apindo) deputy chairwoman, said businesses would keep running as usual even though there might be a period of uncertainty.

"Businesses have to run as usuak, whether there is a presidential election or not , even tough as business players we need certainty" she said in Jakarta.

Agustinus Prasetyantoko, an economist with Atma Jaya Catholic University, said the longer transition period would create uncertainty because whoever won the elections would not be able to create new policies before the inauguration.

"Altough Apindo has finished creating an economic road map, for example, the newly elected president and vice president can't implement anything because they have to wait until October," he said.

Their optimism is reflected in their APEC Business Advisory Council (ABAC) meetings scheduled from April 24 to 26 in Jakarta. 

The important meetings which will discuss financial inclusion in the Asia-Pacific, will be attended by 150 CEOs from the region. 

Apindo chairman Hariyandi Sukamdani said if the winner of the presidential election was the incumbent President Joko "Jokowi" Widodo, there would not be any problems with the long period between the election and inauguration. 

Whoever the winner is, Apindo said it hoped the next administration would be able to create a better investment climate and reduce the complex procedures that can hamper business growth. 


Source: The Jakarta Post