Shinta Kamdani, Kadin's deputy chairwoman and coordinator for investment and maritime affairs, said stability was essential for Indonesia to keep up with other countries in terms of competitiveness, especially in the post-pandemic economy.

“We have a big asset, which is Indonesia's political stability. It is a key that needs to be held dear. Having ‘ripples’ are okay, as long they do not create instability,” Shinta said during a discussion held by Singapore-based DBS Bank.

Read also: PDI-P puts brakes on plan to amend Constitution

Her comments suggest that the Indonesian business community is already scrutinizing the 2024 elections, which have turned murky by recent developments.

The presidential election is scheduled for Feb. 14, 2024, yet the government and House of Representatives failed last month to pass the election budget because of disagreements over costs.

The delay in the budget's approval came shortly after three political parties from President Joko “Jokowi” Widodo's ruling coalition proposed postponing the 2024 general elections by one or two years, and after Coordinating Maritime and Investment Affairs Minister Luhut Pandjaitan claimed that Indonesian netizens favored extending Jokowi's term.

Shinta said Jokowi had the interest to maintain political stability in preserving the country's image in front of the Group of 20, whose current chair is Indonesia.

DBS bank chief economist Taimur Baig said Indonesia was known as a country with a relatively stable democracy. The country has not seen a seismic change in regulatory regimes and economic policies following past elections. 

“They will not change radically just because an election is coming or just because a new person is in office,” Baig told audiences at the same event.

Read also: Many want to extend Jokowi's term. It’s a slippery slope and the consequences could be dire

DBS Group head of research Maynard Arif said that if there were any fluctuations in the Indonesia economy, they would mostly come from external factors, namingly rising geopolitical tensions due to the Russia-Ukraine war, surging commodity prices and monetary tightening, particularly from the United States Federal Reserve.

The economic effects of changes in government would be limited to portfolio investments such as government bonds and stocks instead of foreign direct investment.

“These [portofolio] investors would be the ones likely to react if there were significant changes in Indonesian politics. But once conditions are stable, they would reenter the market,” Arif said.

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