Bali :

News Flash:

Indonesia’s Risk of Recession is Small and Global Importance is Growing Stronger

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest
Share on telegram
Share on whatsapp
Share on email

Antara News are reporting on statements made by Coordinating Minister for Economic Affairs Airlangga Hartarto and Minister of Finance, Sri Mulyani Indrawati, who accompanied President Jokowi in receiving International Monetary Fund (IMF) Managing Director Kristalina Georgieva at the Bogor Presidential Palace.

Hartarto told reporters Indonesia’s risk to experience a recession is relatively small compared to other countries. “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. Some countries’ (debt-to-GDP ratio) is 100-percent,”  Hartarto said.

In addition, Antara News are also reporting that President Jokowi explained the budget deficit is still under control; at around four percent, the trade balance has been in surplus for 26-months, and Indonesia’s foreign exchange reserves are at USD 135-billion.

“And, Indonesia hopes that emerging countries and IMF 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.

President Jokowi expressed hope that the IMF would continue to support Indonesia’s leadership during its G20 Presidency in 2022 while Minister of Finance, Sri Mulyani Indrawati, who was also present at the meeting, suggested the IMF expected Indonesia’s leadership in the G20 Presidency to encourage leaders of the world’s largest economies, to support the actions of global institutions that have the ability to help countries facing crises.

“Ms. Kristalina said earlier that the IMF will take steps to help these poor countries who will face extremely difficult conditions. Now, it is hoped that the leadership of Indonesia under President Jokowi at the G20 meeting will be able to support the steps of institutions that have the ability to help countries that are facing a crisis,” said the Minister of Finance.

According to Sri Mulyani, the IMF conveyed to President Jokowi that the inflationary situation that has hit various countries has caused central banks to issue policies to increase interest rates. Thus, it is possible that various poor countries which are now in a very vulnerable condition will be in increasingly difficult conditions, affected by the food crisis, and also affected by the possibility of a financial crisis.

“As is currently happening in various African countries and also even countries like Sri Lanka, this will be very important because the international community’s ability to prevent crises will become weaker and the risk higher,” she added.

“Mr. President, who will host the G20 later, is very, very important to be able to mobilize the support of all G20 leaders to be able to help especially poor countries,” she continued.

During the meeting, President Jokowi also expressed his hope that African Union countries could be invited to the G20 because so far the G20 has never permanently included these countries in its discussions. Therefore, in this Indonesian presidency, President Jokowi took the initiative to invite the African Union and it is hoped that it will become a permanent decision of the G20.

“This also allows us to discuss world problems more fully because voices from countries, especially from Africa, which are currently facing a lot of food difficulties, economic and financial difficulties are very important,” she said.

 

Source: Antara News, President of The Republic of Indonesia website

Latest Article

Join Our Online Forum

The Bali Expat Forum is one of the longest-running online communities for expats living in Bali. Click here to join

Andrzej Barski

Director of Seven Stones Indonesia

Andrzej is Co-owner/ Founder and Director of Seven Stones Indonesia. He was born in the UK to Polish parents and has been living in Indonesia for more than 33-years. He is a skilled writer, trainer and marketer with a deep understanding of Indonesia and its many cultures after spending many years travelling across the archipelago from North Sumatra to Irian Jaya.

His experience covers Marketing, Branding, Advertising, Publishing, Real Estate and Training for 5-Star Hotels and Resorts in Bali and Jakarta, which has given him a passion for the customer experience. He’s a published author and a regular contributor to local and regional publications. His interests include conservation, eco-conscious initiatives, spirituality and motorcycles. Andrzej speaks English and Indonesian.

Terje H. Nilsen

Director of Seven Stones Indonesia

Terje is from Norway and has been living in Indonesia for over 20-years. He first came to Indonesia as a child and after earning his degree in Business Administration from the University of Agder in Norway, he moved to Indonesia in 1993, where he has worked in leading positions in education and the fitness/ wellness industries all over Indonesia including Jakarta, Banjarmasin, Medan and Bali.

He was Co-owner and CEO of the Paradise Property Group for 10-years and led the company to great success. He is now Co-owner/ Founder and Director of Seven Stones Indonesia offering market entry services for foreign investors, legal advice, sourcing of investments and in particular real estate investments. He has a soft spot for eco-friendly and socially sustainable projects and investments, while his personal business strengths are in property law, tourism trends, macroeconomics, Indonesian government and regulations. His personal interests are in sport, adventure, history and spiritual experiences.

Terje’s leadership, drive and knowledge are recognised across many industries and his unrivalled network of high level contacts in government and business spans the globe. He believes you do good and do well but always in that order. Terje speaks English, Indonesian and Norwegian.

Contact Our Consultants

[wpforms id=”43785″]

Ridwan Jasin Zachrie

CFO of Seven Stones Indonesia, Jakarta

Ridwan is one of Indonesia’s top executives with a long and illustrious career in the financial world. He holds several professional certifications including being a Certified Business Valuer (CBV) issued by the Australian Academy of Finance and Management; Broker-Dealer Representative (WPPE); and The Directorship Certification for Directors and Commissioners, issued by the Indonesian Institute of Commissioners and Directors.

His experience includes being the Managing Director at one of the top investment banking groups in the region, the Recapital Group, the CFO at State-owned enterprises in fishery industry and the CEO at Tanri Abeng & Son Holding. He’s also been an Independent Commissioner in several Financial Service companies and on the Audit and Risk Committee at Bank BTPN Tbk, Berau Coal Energy Tbk, Aetra Air Jakarta as well as working for Citibank, Bank Mandiri and HSBC. His last position was as CFO at PT Citra Putra Mandiri – OSO Group.

Ridwan has won a number of prestigious awards including the Best CFO Awards 2019 (Institute of Certified Management Accountant Australia-Indonesia); Asia Pacific Young Business Leader awarded by Asia 21 Network New York USA (Tokyo 2008); UK Alumni Business Awards 2008 awarded by the British Council; and The Most Inspiring Human Resources Practitioners’ version of Human Capital Magazine 2010.

He’s a member of the Board of Trustees of the Alumni Association of the Faculty of Law, Trisakti University, Co-Founder of the Paramadina Public Policy Institute and actively writes books, publications and articles in the mass media. He co-authored “Korupsi Mengorupsi Indonesia” in 2009, which helps those with an interest in understanding governance in Indonesia and the critical issue of corruption. Ridwan speaks Indonesian and English.

Per Fredrik Ecker

Managing Director of Seven Stones Indonesia, Jakarta

Per is the Managing Director of the Seven Stones Indonesia (SSI) Jakarta office and has more than 25-years’ experience in Indonesia, China, and Western Europe. He previously worked in senior management positions with Q-Free ASA, Siemens AG, and other companies in the telecom sector. Over the last six years, he has been the Chairman of the Indonesia-Norway Business Council (INBC) and recently become elected to be on the board of EuroCham Indonesia.

His most recent experience is within Intelligent Transport Solutions (ITS), Telecom, and other sectors within the Indonesian market. He is today through his position in SSI and by representing Norway Connect, promoting Nordic and European companies that would like to explore business opportunities in the Indonesian market. He’s also playing an active role to help create the Nordic House concept in Jakarta that will provide an excellent platform for Nordic companies entering Indonesia, where they’ll find a community that can offer support with trusted information and affordable services to enter this market.