Indonesia’s risk to experience a recession is relatively small compared to other countries, Coordinating Minister for Economic Affairs Airlangga Hartarto stated.after accompanying President Joko Widodo (Jokowi) to receive International Monetary Fund (IMF) Managing Director Kristalina Georgieva at the Bogor Presidential Palace on Sunday.
“Indonesia sees that its domestic situation is relatively good. Some countries have entered recession, but Indonesia has a very small potential for recession compared to other countries, which is only three percent,” he said.
At the meeting with Georgieva, President Jokowi conveyed that Indonesia’s economy is in good condition, illustrated by domestic inflation at 4.2 percent, economic growth at 5.01 percent, and a debt-to-GDP ratio of 42 percent, he said.
“Some countries’ (debt-to-GDP ratio) is 100 percent,” Hartarto said.
In addition, President Jokowi also explained in the meeting, that the budget deficit is still under control; at around four percent, the trade balance has been surplus for 26 months, and Indonesia’s foreign exchange reserves are at US$135 billion, he said.
Furthermore, the President expressed hope that the IMF can always support Indonesia’s leadership during its G20 Presidency in 2022.
“And, Indonesia hopes that emerging countries and IMF’s will remain positive about Indonesia, as we are concerned about the rising inflation in several countries, (where) interest rates will enter a new regime (scheme), which is an increase in the global interest rate that will affect the investment that Indonesia urgently needs,” Hartarto elaborated.
On the other side, IMF expected that Indonesia’s leadership in the G20 Presidency can encourage the leaders of the world’s largest economies, to support the actions of global institutions that have the ability to help countries facing crises, Minister of Finance Sri Mulyani Indrawati told at the same meeting.
Source: Antara News