The University of Indonesia's Institute for Economic and Social Research (LPEM-UI) has estimated that the amount of money likely to circulate during this year, as a result of election fever, will reach Rp 115.3 trillion (US$10.15 billion).
It says most of the money will come from legislative election candidates, accounting for Rp 71.22 trillion or 62 percent of the total amount, while the government will spend Rp 25.12 trillion or 22 percent on the election.
The LPEM-UI added that of the total Rp 115.3 trillion, Rp 10.81 trillion would go to presidential and vice presidential campaign funds, while campaign funds for House of Representatives (DPR) and Regional Representatives Council (DPD) candidates would amount to Rp 8.15 trillion.
LPEM-UI researcher Teguh Dartanto said that at least Rp 90 trillion of the total Rp 115.3 trillion would be spent during the campaign periods, triggering a multiplier effect that would stimulate the economy.
One of the most obvious effects would be the increased amount of printing, which would boost ink and paper manufacturing industries and see more printing workers employed, he went on.
It is predicted that the 2014 election will lead to 7.45 percent growth in the paper and printing industry, followed by the garment and textile industry (2.85 percent); hospitality (1.65 percent), and transportation and telecommunications (1.37 percent).
“The 2014 elections will promote economic growth of between 0.5 and 0.7 percent,” Teguh said in Jakarta on Wednesday as quoted bytempo.co.
He further said that election-related activities would also create job opportunities for 2.48 million people. “As many as 217,000 jobs will become available in the paper and printing sectors,” he added.
Moreover, according to Teguh, 170,000 new jobs would open up in the transportation and telecommunication sectors, while a further 113,000 would come in the garment and textile industry.
Source/Fuente: http://www.thejakartapost.com/news/2014/03/19/rp-1153t-circulating-durin...
