AAEI Chairman: JCI Is Predicted To Be Fresh In Political Year

Illustration of shares (photo: Doc between)

JAKARTA - The Association of Indonesian Stock Analysts (AAEI) stated that the Gabunhan Stock Price Index (IHSG) will usually strengthen in the political year or General Election (Pemilu).

AAEI chairman David Sutyanto said it was possible that there would be pressure during the campaign.

"However, after the voting process, the index strengthened again," David said, quoting between.

He gave an example, during the 2004 election period which was held in two rounds, the stock index increased 17.7 percent, even in the 2009 elections it increased significantly 53.7 percent.

"(In 2009) it is estimated that the market responded positively when the presidential candidate Susilo Bambang Yudhoyono (SBY) collaborated with Boediono, the former Governor of Bank Indonesia (BI) as vice president, who was considered propasar," said David.

However, the economic factors and government policies implemented will still affect the movement of domestic stock indexes.

David believes that the economy will grow and move positively during the election period, one of which is the effect of the large presidential election budget (Pilpres), the Legislative Election (Pileg) and the Regional Head Election (Pilkada) which reached Rp109.1 trillion.

With such a large budget, according to him, there will definitely be even spending on goods and services throughout the country.

"Both the party, legislative candidates, cagub, cabup, cawalkot and others, will definitely spend the funds on the campaign. And from here it is hoped that the economy will rotate," said David.

On the same occasion, Chief Executive of Economic & Capital Market Outlook 2024 Haryajid Ramelan said that the political year does not need to be overly addressed, because it will continue to exist in the five-year period.

"The election has been running several times and the capital market continues to grow," said Haryajid.

For information, on February 14, 2024, a national vote will be held to elect the president, members of the legislature and regional leaders for the period 2024 to 2029.