JAKARTA - Coordinating Minister for the Economy Airlangga Hartarto stated that the government does not deny the opportunity for Indonesia to be hit by an economic recession due to continued uncertainty, mainly caused by global factors.
However, he said that Indonesia's condition was much stronger when compared to other countries with the same threat. The reason is, Indonesia is called Airlangga has a fairly well-maintained economic fundamentals.
For example, he explained that inflation was relatively good with a level of around 4.2 percent with the achievement of gross domestic product (GDP) growth reaching 5.01 percent.
"The economic situation in Indonesia is relatively good with a smaller recession potential compared to other countries, which is around 3 percent," he said in a written statement on Monday, July 18.
Airlangga added that the debt-to-GDP ratio (debt to GDP ratio) was stable at 42 percent.
"Compare with several other countries whose debt ratio can be 100 percent to GDP," he said.
Then for the budget deficit (APBN) it was still around 4 percent and the current account was 0.5 percent and the balance of trade of Indonesia scored 26 positive months.
"We also have large foreign exchange reserves, namely 135 billion US dollars," he said.
Even so, it is said that the government will continue to carry out comprehensive monitoring of Indonesia's macro economy, especially in the face of the global crisis.
"We are very worried about rising inflation conditions in various countries. Interest rates will enter a new regime, namely an increase in global interest rates and of course will greatly affect the investment that is needed by Indonesia," concluded Coordinating Minister Airlangga.
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