Sri Mulyani Calls 50 Chinese Property Companies Financially Difficulty

Minister of Finance Sri Mulyani. (Photo: Doc. ANTARA)

JAKARTA - Finance Minister Sri Mulyani Indrawati said that global economic uncertainty made the economy in China continue to deteriorate and appealed to remain vigilant because Indonesia as one of China's trading partners would have an impact on the impact.

"China is experiencing slowing economic growth, but this is something we need to see why and how it impacts the Indonesian economy," he said at a press conference, Wednesday, October 25.

Sri Mulyani said that economic fluctuations in China are very worrying, especially in the property sector, which is reportedly experiencing financial difficulties.

"China's property experienced serious problems yesterday Financial Times said 50 companies in China in the property sector were mostly experiencing financial difficulties or defaults and even default failed to pay," he explained.

Sri Mulyani said that China is one of the largest economies in the world and is the driving force for export growth from many countries, including Indonesia.

"This means that it will influence Indonesia because China's economy as the second largest economy in the world is the motor of export growth from many countries including Indonesia," said Sri Mulyani.

In addition, Sri Mulyani asked all parties to remain vigilant for developed countries such as the United States (US) and European countries that are experiencing pressure.

For example, in the US there was turmoil in the 10-year-old government bond market in September and October or an increase in the impact of US debt securities experiencing a yield spike of up to 5 percent.

"Usually the US yield is low because interest rates during especially since the global financial crisis are very low, the Fed policy is only 25 bps or 0.25 percent," said Sri Mulyani.

Sri Mulyani added that other sentiments such as high inflation due to the Ukraine and Russia war, as well as the recent Israeli and Hamas conflicts that caused oil prices to soar.

"This condition will threaten Europe, which will experience a recession. Now Germany is experiencing a contraction zone that will enter the recession zone," he explained.