Election year doesn't mean everything would be on hold, especially investing in Indonesia. Although analyst said that would be nice to wait till the outcome of the election and how new goverment's policy regarding economy, but many investor believe this is the right time, because everything in basic condition. Just like to get cheaper price in stock market or else buying goverment securities.
Speculation regarding the outcome of the election is believed to be the consideration for some investor. They're optimist because many time Indonesian success and survive the election year. Then usually economy got boosting afterwards.
Lets see also the foundation of Indonesian economy like Rupiah, which is stable and little bit stronger than US dollar for the following month. It is also support the consideration that Indonesia economy is fine. Although for sometimes Rupiah was underpressure because of external condition, doesn't take too long to go back in stable condition, this is the one needed by investor to start investing.
In the meantime some investor sold their stock, that's because end of the year and window dressing. When new year passed, many are back to hunt the stock again. over all stock market is fine and on the right track.
Another good news for investor is the infrastructure, new toll road in java island, the biggest economy island which is boost the economy support for eficiency in dristibution and lower the cost for economy. Analyst believe these could drive also another boost in car industry which has strong support also in economy growth.
Although the skyrocketing debt could hurt the economy in future, if new goverment could not handle budget wisely. indonesia still need loan to complete so many infrastructure needed to support the economy. In the end, everything still fine, investment grade gradually better and investor still believe of the indonesian economy.
