Sri Mulyani On Indonesia's Potential To Experience An Economic Recession: We Will Not Be Complacent, Remain Vigilant

Minister of Finance Sri Mulyani. (Photo: ANTARA)

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani is aware of the potential for a recession that is haunting Indonesia.

Based on a Bloomberg survey, Indonesia is ranked 14th out of 15 countries in Asia that are likely to experience an economic recession.

Indonesia's probability of entering a recession is only 3 percent, far below Sri Lanka's 85 percent

Below Sri Lanka, there is also New Zealand with a percentage of 33 percent, South Korea with 25 percent, Japan with 25 percent, and China with 20 percent.

"We will not be complacent, we remain vigilant," said Minister of Finance Sri Mulyani quoted from Antara, Wednesday, July 13. Although she will not be complacent, Sri Mulyani believes that the very low percentage of Indonesia's recession potential reflects the resilience of domestic economic growth, indicators of balance of payments, to a strong State Revenue and Expenditure Budget (APBN).

She emphasized that all policy instruments would be used, including fiscal, monetary, financial sector policies, and other regulations to monitor the possibility of a recession, especially regulations from corporations in the country.

"From the corporate side as well as from our household, we are also relatively good," said Sri Mulyani.

According to her, Indonesia's financial sector is relatively stronger since the global crisis in 2008-2009.

In this way, Indonesia's resilience will improve and the risk of bad bank loans will be maintained.

This illustrates that all sectors learned from the global crisis in 2008-2009.

"However, we must remain vigilant because this will continue until next year. The global risk of inflation and recession or stagflation is very real and will become one of the important topics of discussion at the G20 Indonesia," concluded Sri Mulyani.