Institute for Research on Economics and Society – Faculty of Economics and Business – University of Indonesia

Impact of the 2014 General Election on Macroeconomic Indicators

December 17, 2014

Adam Fairu Amru and Teguh Dartanto

Executive Summary

Elections are a big celebration of democracy for Indonesia which has political and economic impacts. The large political costs, campaign funds, and increased economic activity related to political campaigns also contribute to the economy. The behavior of business actors and investors as well as market sentiment also play a role in influencing the economy in a political year. This study discusses the estimated impact of the election on macroeconomic indicators in the form of consumption, investment, and money supply, as well as the IHSG.

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