'€œContributions from the election will likely be good enough because ad spending will certainly increase. With such an increase in spending, demand will increase as well,'€ he said in Jakarta on Monday, as quoted by Antara news agency.

Chatib said household consumption would still account for the biggest portion of spending in the national economy, while the 2014 election would contribute around 0.2 percent to economic growth.

The minister further said he was not worried about the World Bank'€™s (WB) latest projections, which revised the forecast for Indonesian economic growth this year to between 5.5 percent and 5.9 percent from between 5.8 percent and 6.2 percent, due to the election'€™s limited influence.

'€œWe are projected to still grow by 5.8 percent to 6 percent while Bank Indonesia'€™s projection is between 5.5 percent and 5.9 percent. So, the government'€™s figure is still in line [with the WB forecast],'€ said Chatib.

Earlier, Asian Development Bank (ADB) economist Edimon Ginting said the upcoming election would boost performance in the services sector, which would eventually lead to increases in the consumption sector.

'€œThe election will certainly boost the hotel and restaurant sectors and increase spending in the garment sector,'€ he said.

Edimon predicted that this year'€™s economic growth would be supported by performance in the investment and export sectors that would strengthen again, after suffering a decline due to weak global demand.

'€œWith the election and a new government, investment will increase and we are more optimistic. The election gives contributions and positive impacts but the main sources of the growth are still in investment and export,'€ he said. (ebf)

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