Stability after the Constitutional Court's decision is a breath of fresh air for business actors

Although this decision was not unanimous because three of the eight constitutional judges, namely Saldi Isra, Enny Nurbaningsih, and Arief Hidayat, submitted dissenting opinions (different opinions), Anies-Muhaimin and Ganjar-Mahfud stated that they accepted and respected a href="https://www.kompas.id/label/putusan-mk?open_from=automate_body_url">MK's decision is a final and binding decision.

Also read: Constitutional Court Decision Tests the Maturity of the State of Law

The two couples also wished Prabowo Subianto-Gibran Rakabuming Raka good luck, fulfilling the people's hopes.

Economic analyst at the Indonesian Employers' Association (Apindo), Ajib Hamdani, assesses that this condition is quite positive for investment activities and the business world. The reason is, in principle there are two main factors that influence the sentiments of economic stakeholders, namely stability built on legal certainty and the return factor.

"Legal certainty minimizes risks. The decision of the Constitutional Court is likely to be accepted and relatively does not cause political or social upheaval. This stability makes investment and economic certainty more measurable," said Ajib when contacted on Tuesday (23/4/2024).

Meanwhile, in the context of yield or profit rates, a number of Indonesia's economies offer abundant potential, ranging from natural resources and leading commodities to domestic consumption levels that contribute to the national gross domestic product (GDP).

"Meaning, the increase in added value, manufacturing activities, and investment still have a large portion and potential. When certainty and yield levels are optimal, the economy will be escalated to the maximum," said Ajib, adding.

According to him, the Constitutional Court's decision is a breath of fresh air for the national economy in the midst of unfavorable global economic policies and geopolitical conditions. The conflict between Iran and Israel that continues to escalate cannot be predicted when it will ease. In addition, global monetary policies triggered by the high benchmark interest rates of the United States Federal Reserve also put pressure on the exchange rate of the rupiah.

Also read: Reuters Survey: Majority of Economists Expect Fed Interest Rates to Decline by September

Ajib added that several indicators show that the national economy is still on the right track of growth. Indonesia continues to experience quite aggressive growth post-pandemic, even above 5 percent with projections to reach around 5.2 percent in aggregate by the end of 2024.

"This year's economic growth target certainly requires support for political and social stability, which is a fundamental prerequisite for investment and market confidence. Moreover, the programs carried out by Prabowo-Gibran, including the continued promotion of domestic industry, certainly require a large influx of investment," he said.

Domestic stability can become the cornerstone for business enterprises to operate amidst global unrest that causes the weakening of the rupiah's exchange rate and the potential surge in fuel prices.

Contacted separately, Deputy General Chairperson for Regional Autonomy Development Kadin Sarman Simanjorang appreciated the announcement of the results of the Constitutional Court's decision which had been implemented openly, ran safely, comfortably and conducively.

According to him, political stability within the country is highly necessary during the current condition of intense global geopolitical tensions. Domestic stability can function as a support for the business world in carrying out their operations amidst the global turmoil that weakens the value of the rupiah and potentially causes a rise in fuel prices.

"In the midst of this situation, aside from focusing on maintaining the economy, political stakeholders also need to ensure that the social situation and conditions remain conducive," he said.

Sarman also appreciates the attitudes of the two pairs, Anies-Muhaimin and Ganjar-Mahfud, who stated that they accept and respect the decision of the Constitutional Court. These reassuring statements that prioritize unity and togetherness are considered to maintain the psychology of the market, investors, and national businesspeople's psychology.

"With that being said, the economic targets set by the government, such as the 2024 economic growth target, can be achieved with the ability to mitigate various global economic challenges that affect the national economy," said Sarman.

Meanwhile, General Chairman of the Indonesian Retailers and Shopping Center Tenants Association (Hippindo), Budihardjo Iduansjah, stated that political stability after the 2024 presidential election would accelerate retail business actors in executing their previously planned expansion and investment actions.

"The certainty from the presidential election result allows us to accelerate the completion of our delayed expansion. We will resume the expansion," he said.