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Indonesia's Economic Outlook for the 2024 Year of Politics

Will the Year's Political Dynamics Affect the Country's Economic Growth?

Indonesia is having the so-called "festival of democracy" with the next year's presidential and legislative elections. The once-every-five-year political event will also see people voting for the governors and mayors of their choice.


The 2024 fanfare will likely generate wide-ranging social and economic impacts as candidates from numerous political groups, each with their own following, go head-to-head for the voters' support, attracting the people to join in the political arena's "game."


This razzle-dazzle is by no means illicit and is not something to frown upon, as long as the candidates play by the legal book and the rules are honest and fair.


From an economic standpoint, with the changing political landscape, business owners and investors will pause their ventures to avoid any repercussions arising from business decisions made in this period.


For that reason, leading up to the festival of democracy's culmination on February 14, 2024, Indonesia's economy will likely be confronted with numerous significant hurdles.


This will ring especially true given that the pre-election activities will not only take place for a day or two, some weeks, or a month. There will be several months' worth of a run-up to the elections.


Some predict that the country's economy is bound for a little setback. At least, there will be a period of stagnation where the economy neither expands nor contracts with sluggish growth.


Despite the stagnation and the strong political and social tension, some still believe that consumer spending persists or even soars.


Indonesia's Economy Is on Track for 5 Percent Growth in 2024

If there is one thing certain about campaigns, political parties, and presidential and legislative candidates have been actively pursuing it: the demand for catering, campaign paraphernalia, and other consumption goods.


That is why businesses in these industries will still hum, with the potential for higher profitability. The demand for transportation and logistics services is also set to increase in parallel.


Other industries are also having their own share of profits, with printing, broadcasting, communications, and telecommunications companies getting their slices of the cake. In short, while a slew of industries are experiencing a slowdown or even coming to a halt under the hotter political climate, others are enjoying greater benefits.


See also: Tips for Choosing the Right Logistics Company


The recent dynamics ahead of the general elections mostly inform the predictions for the national economy in 2024 as one of the greatest moments in Indonesia's democracy. In its latest Asian Development Outlook, the Asian Development Bank (ADB) projects a small year-over-year growth of around 5.0 percent for the Indonesian economy in 2024.


It means the economy is going nowhere, with the same growth of 5.0 percent YoY as predicted for 2023.


The Senior Country Director of ADB, Henry Ma, cites political activities as one of the reasons for the slackening investment, leading to stalled growth.


Nevertheless, he stated that some sectors are still doing well, with both consumer goods and industrial goods sectors being two significant examples. Demand for foods, beverages, and clothing, for example, is on the rise.


The Logistics Sector Remains Resilient Ahead of the Year of Politics

Despite the positive outlook for the sector, potential business risks are still inevitable with the current political situation. For example, election campaigns and related mass gatherings can obstruct traffic, getting in the way of business logistics transportation.


And when logistics provider does not offer a comprehensive and one-stop service, the situation will only get worse. This means ineffective and inefficient business operations.


See also:Logistics Services vs Freight Forwarding: Understanding the Distinctions


If you are looking for a logistics solution for your business, be sure to examine your company of choice for trustworthiness and good track record.


One of the logistics companies that can give you that is SERA Logitik (SELOG), a subsidiary of PT Serasi Autoraya (SERA). SELOG is a member of the PT Astra International Tbk group, a company renowned for its long history in the industry.


Starting as a vehicle rental company, SERA has become the largest, industry-leading transportation provider.


Now, with more than 32 years of experience, the ever-innovating company is providing excellent, effective, and efficient logistics solutions through SELOG.


SELOG understands customer needs for end-to-end logistics with a wide range of services, from contract logistics to shipping services and shipping agency, freight forwarding and courier services, warehouse and yard management.


Driven by the latest digital technology, SELOG services do not only streamline your business, they are also effective and efficient.


With its Astra Fleet Management Solution (Astra FMS), the logistics company is giving you an IT-backed, all-in-one solution for vehicle management in Indonesia.


Its fleet of well-maintained, fully-equipped vehicles means virtually no downtime for your business. To learn more about SERA and its services, including SELOG, visit its official website at https://www.sera.astra.co.id/.


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