B

usinesspeople and experts have come forward to urge the government to ensure economic stability amid rising political tension in the nation.

As democracy blooms in Southeast Asia’s largest economy, the number of social and political conflicts has also risen in the past few years despite concerted efforts from the President Joko “Jokowi” Widodo’s administration to improve the economy and business environment.

“Of course, staging a protest is a form of freedom of speech, but we should control the situation and not let it become violent because that will negatively affect the country’s competitiveness and business climate,” Shinta Widjaja Kamdani, the deputy chairman for international relations at the Indonesian Chamber of Commerce and Industry (Kadin), said on Wednesday.

Shinta, who is also the CEO of conglomerate Sintesa Group, said the latest rally against Jakarta Governor Basuki “Ahok” Tjahaja Purnama had stirred up worries among business owners with some offices closing early and letting their employees go home on the day of the demonstration due to fear of widespread riots.

Thousands rallied in Jakarta on Nov. 4 against Ahok — who is currently campaigning for reelection — for alleged blasphemy. The rally went peacefully throughout the afternoon but turned violent in the evening.

The rally’s violent end has triggered fears among many, particularly minority groups, that the capital will see a situation resembling the May 1998 riots that led to the resignation of former president Soeharto.

According to data from the Indonesian Shopping Centers Association (APPBI), the massive anti-Ahok protest resulted in a 60 percent decline in the number of visitors at Jakarta’s shopping centers as people decided to stay home.

Indonesia heavily relies on domestic spending for growth as it accounts for more than half of its gross domestic product (GDP).

“We support people’s right to free speech, but there are millions of others who aren’t involved in the rally who also have the right to conduct their daily activities,” said APPBI chairman Stevanus Ridwan.

Prior to the anti-Ahok rally, there were also protests staged by labor unions and truck drivers of state-owned oil and gas firm Pertamina.

There is high expectation that the government will step in to prevent the political unrest from continuing as failure to do so will affect the country’s risk perception in the long term and undermine ongoing efforts to improve business certainty, businesspeople say.

Economic growth, which is already suffering a downward trend, is also at stake. GDP growth slowed to 5.02 percent in the third quarter from 5.19 percent in the previous quarter, as shown by the latest data from the Central Statistics Agency (BPS).

Meanwhile, UOB Indonesia president director Kevin Lam claimed that stability, in the wider sense of the term, was very important for the country because medium- and long-term investors might rethink their plans if there was policy uncertainty.

Lam said Indonesia’s economy still had the potential to grow even faster if there was regulatory certainty and better logistics, two factors that would improve its ease of doing business, an area in which Indonesia lags behind regional neighbor Vietnam.

Economist and former finance minister Chatib Basri projected that GDP growth could increase to around 5.1 or 5.2 percent in 2017 even with flat private consumption, weak exports and unpredictable demand dampening investment.