Opportunities and Challenges at the Beginning of the Political Year

Abstract

The first quarter of 2014 witnessed the beginning of the election year, with the legislative election taking place in April. Possibilities of political instability after the parliamentary election, and towards the presidential election, will have consequences on the economy. The first quarter of 2014 also witnessed the issuance of the new trade law and industry law, which add to a long list of trade protection measures deployed by the Indonesian government. Meanwhile, the Central Bank of Indonesia (BI) also continues its tight monetary policy, keeping the interest rate at 7.5%.