The external factor, global economic uncertainty is increasingly pressuring Indonesia. Despite strong domestic economic fundamentals, efforts to boost Indonesia's economy will be heavier this year. External factors, among others, the increasing of USA-China trade wars, and China's economic growth which is expected to weaken to 6.5 percent this year, India and European Union trade barriers, as well as the hike of world crude oil prices. The influence of external factors, among others, is reflected in the rupiah exchange rate against the US dollar and the Composite Stock Price Index. Director of Center for Reform on Economic, Muhamad Faisal, told Kompas yesterday (28/6) that the hike of world crude oil prices, trade barriers, and commodity price’s uncertainty make Indonesia's trade balance deficit. The hike of US central bank , the Fed interest rate which responded by Bank Indonesia by raising the benchmark interest rate will raise the credit rate. If lending rates rise, the real sector will be heavier in driving the domestic economy. From that indicator alone, it is difficult for Indonesia to develop its economic growth. Chief economist of PT Bank Tabungan Negara (Persero), Winang Budoyo, said that currently Bank Indonesia is predicted to prioritize rupiah stability rather than economic growth.
Supporting parties Joko Widodo continues to consolidate the presidential election -Pilpres 2019. They assess the results of elections of regional heads - pilkada 2018 simultaneously can be a political capital to strengthen the coalition that brings Jokowi two more periods. This was revealed after the Chairman of the Central Executive Board of the Golkar Party, Airlangga Hartarto, held a meeting with the chairman of the DPP United Development Party in the office of United Development Party, Jakarta yesterday (28/6). According to him, the meeting was important after the result of elections was reported. The increase of political capital needs to be followed up by concrete steps, including intense communication between the chairman and the president. Airlangga suggested that the coalition supporting Jokowi should be confirmed as soon as possible. Airlangga added that there is an opportunity for other political parties to join.
The result of 2018 regional head elections is predicted to strengthen President Joko Widodo's chances in the presidential election next year. The quick count of survey institutions shows that the pair of candidates for governors who are nominated by the parties supporting Jokowi controlled 10 of the 17 provinces. Director of Saiful Mudjani Research & Consulting Sirojudin Abbas said on Tuesday (26/6/2018) that many regional heads supported by the government-backed party represented a map of the 2019 presidential election. He said the gubernatorial election showed the strengthening of Jokowi's supporters. Statement of supports to Jokowi presented by the regional head candidates also added the opportunity.