THE ECONOMIC IMPACT OF ASIAN GAMES HAS NOT APPROPRIATE WITH EXPECTATION

The Asian Games performance has not produced direct economic impact as expected. Head of the National Development Planning Agency (Bappenas) Bambang Brodjonegoro last July estimated that this four-year party will have an impact on Jakarta and South Sumatra.

Jakarta is expected to receive a direct impact of Rp.22 trillion. The impact was obtained from construction investment of Rp. 13.7 trillion. "The economic impact is also obtained from the expenditure of foreign and domestic visitors which is estimated to reach IDR 2.6 trillion," he said in Jakarta, Sunday (07/29/2018) as quoted from CNN Indonesia.

Whereas South Sumatra, the direct economic impact of up to Rp. 18.5 trillion. The impact of that size came from the construction investment value of Rp. 15.4 trillion and operations which reached Rp. 2.1 trillion.

According to the Chairperson of the Indonesian Hotels & Restaurants Association (PHRI) Hariyadi Sukamdani, they hoped many supporters would come. It is estimated, this event is able to attract 200 thousand foreign tourists and covered around 7,000 media. But the reality is not too much. Hotel guests may be athletes, officials, and media. The occupancy of hotels in Jakarta is only increasing in the Senayan area, the location where many Asian Games are held. Sunday (8/19) to the Kumparan, Hariyadi explained, the increase in hotel occupancy was actually seen in Palembang, South Sumatra.

At the opening of the Asian Games, according to Haryadi, the majority of the audience were residents living in the Jakarta area and its surroundings. As a result, there was no significant impact on hotel occupancy around the stadium.

The sector that is passionate is precisely the perpetrators of Micro, Small and Medium Enterprises (MSMEs). Chairman of the Indonesian UMKM Association (AKUMINDO) Ikhsan Ingratubun said, MSME sales until Sunday (8/19) had increased by 300 percent.

Economist for the Institute for Development of Economics and Finance (INDEF) Bhima Yudhistira Adhinegara said that cooperation with MSMEs could provide a domino effect on the Indonesian economy.

"Later there will also be thousands of foreign tourists entering so that it will boost foreign exchange. Indirectly this also helped to strengthen the rupiah in the middle of this year's implementation, "he said as quoted from Pikiran Rakyat, Saturday (08/18/2018).

But this impact is not expected to be as strong as the moments of Ramadan and Eid. During the second quarter of 2018, during Ramadan and Eid al-Fitr, economic growth reached 5.27 percent. While Indonesia's economic growth in the third quarter, when the Asian Games took place, Bhima predicted its growth would reach 5.1 percent.