The World Manufacturing Deru Is Slowing, The Government Is Alert For Its Impact On The National Economy

Illustration (Photo: Doc. Antara)

JAKARTA - The government through the Minister of Finance (Menkeu) Sri Mulyani Indrawati said Indonesia needed to anticipate the possibility of weakening world economic performance due to high inflation and rising interest rates.

This is reflected in the performance of the manufacturing Purchasing Managers Index (PMI) globally experiencing a decline from the level of 51.1 to the level of 50.3.

In his notes, from members of the G20 and ASEAN-6, only 24 percent of the countries whose PMI activities experienced acceleration and expansion, including Indonesia, Thailand, the Philippines, Russia, Vietnam, and Saudi Arabia.

However, 32 percent of countries such as America, Japan, India, Malaysia, Brazil, Australia, Singapore, and South Africa have experienced a slowdown or the condition has decreased. Even Germany, Italy, England, South Korea, Canada, Mexico, Spain, and Turkey, now their PMI has entered the level of contraction," he said in a press statement quoted on Tuesday, September 27.

Not only from the manufacturing sector, globally the world economy is still quite depressed with the assumption that there will be a correction down.

Indonesia itself until the first semester of 2022, gross domestic product (GDP) we have reached 7.1 percent above the level before the pandemic. This means that we have recovered from the economic level," he said.

Contrastion situations occurred in many countries, such as Mexico, Thailand, and Japan, whose GDP levels were still below the level of the pandemic.

"This means that they have not recovered at all," said the Minister of Finance.

Furthermore, the state treasurer also revealed that the government will continue to alert fiscal instruments as a carbon shock in maintaining the national economy.

"This condition will continue to be monitored and of course we manage not to have too big an impact on the domestic economy. The state budget will continue to work hard to protect the public from the shocks caused by turmoil that occurred in the global financial market, commodity markets, and geopolitical markets," closed the Minister of Finance Sri Mulyani.