The Policy Information Analysis Agency (BAIK) of Kadin Indonesia intends to hold a "FGD on Business Economic Policy Projections 2024-2029" which aims to see how economic conditions and changes in new government policies, especially for the business sector.

The FGD was held on:
Friday, March 15 2024 (Hybrid)
At 13.00-15.00 WIB
Menara Kadin Indonesia, Jakarta.

Political stability is the main capital for national economic development including domestic markets and industries. Optimistic that the national economic situation will improve as investor confidence is directly proportional to national security and conduciveness after the 2024 elections. President Jokowi's successor government must be able to continue the economic performance that has a strong foundation and maintain the stability of the national economy that has been built over the past 10 years.

Indonesia's current macroeconomic conditions are still showing good results. Indonesia's economy could reach 5.05 per cent by 2023, with an inflation rate of 2.61 per cent year on year (yoy). Foreign exchange reserves reached 145 million US dollars, and the trade balance surplus was Rp 570 trillion. One example of the industry's positive performance can also be seen in the performance of the financial services industry, which is reflected in the growth of lending reaching IDR 3,603 trillion, growing 13.3% on an annual basis or year on year (YoY).

The 2024 general election has made investors question the potential policy changes resulting from the election of one of the candidates that could affect business and economic conditions in the future. The government in the upcoming period is also expected to have considerable homework along with Indonesia's aspirations to become a developed country.

One of the positive signals that was felt in the economy after the end of the 2024 Presidential Election was the JCI had skyrocketed more than 2% to 7362.68 ending in the positive zone. This position shows that JCI managed to pass its all-time high which was created on 5 January 2024.

The uncertainty of economic policies, such as taxes, government spending, and monetary policy, amidst uncertain global conditions increases the risk of managerial decision-making in firms. Often, during periods of high policy uncertainty, firms reduce capital investment (Gulen & lon, 2016), delay merger and acquisition deals (Nguyen & Phan, 2017), and retain existing resources until the uncertainty is resolved (Lee, Pittman, & Safar, 2016).

Against this backdrop, investors and market participants often question the potential for policy changes resulting from the election of a candidate that could affect the business going forward. This raises questions about the strategies that investors and businesses need to prepare for after the 2024 elections. While the impact of policy uncertainty on company policies is well documented, how companies offset the impact of policy uncertainty on company performance and the industry and business world at large is explored. Therefore, KADIN Indonesia's Policy Information Analysis Agency intends to organise an FGD that aims to see how the economic conditions and policy changes of the new government, especially for the business world.

The objectives of this FGD include:
● Reflection on Indonesia's Economic Policy,
● Discuss the policies needed by the business world in facing the economic challenges of 2024-2029,
● Policies that businesses need to advocate for 2024-2029.

Output:
● Exploring the expectations of businesses related to the expected economic policies
● Identify existing economic policies that need to be revitalised
● Policy brief for the government