Andriansyah, an assistant deputy at the ministry, said that concerns about the sustainability of government policies ahead of the election had made investors adopt a "wait-and-see" attitude.
"However, the government is urging investors to continue investing as it has mitigated the risk of a weakening global economy," he said during the 2024 Indonesian Economic Projections Seminar, which was followed online on Wednesday.
He advised investors that they could continue investing in sectors that provide short-term profits, such as food, beverage, textile, and clothing, as they are supported by election-related events.
He also assured investors that they could continue investing in Indonesia's new capital Nusantara (IKN), whose development will be continued.
The government is optimistic that economic growth in 2024 will reach 5.2 percent despite a weakening global economy, Andriansyah said.
"Our economic fundamentals are relatively better than peer countries," he added.
The economies of India and ASEAN countries, which are Indonesia's trading partners, will continue to grow in 2024 and have the potential to support national export performance, he projected.
Meanwhile, inflation is expected to be around 2.5 plus or minus 1 percent on an annual basis in 2024, he added.
To support economic growth, the government has taken several measures, such as implementing the Job Creation Law and reforming risk-based business licensing, Andriansyah pointed out.
Furthermore, he noted that the government is striving to maintain food price stability and distribute social assistance to help maintain people's purchasing power. The social assistance will include the distribution of rice to 22 million beneficiary families in 2024, he added.
Indonesia will hold the 2024 General Elections on February 14. Around 204.8 million voters are expected to cast their ballots in the elections.
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Translator: Sanya Dinda, Raka Adji
Editor: Anton Santoso
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