Consumption Needs To Be Boosted To Face Recession, Intermediate-Atas-Please Spend The Money

Illustration. (Photo: Doc. Antara)

JAKARTA - The world is predicted to experience a global recession in 2023. Director of the Institute for Development of Economics and Finance (INDEF), Tauhid Ahmad, appealed to people with a medium category or rich economy to continue to spend their money next year.

This step is needed to boost consumption which then has an impact on the lack of risk of contraction to economic growth.

Tauhid assessed that the economy of most countries in the world is still contracting and will indeed experience a recession next year.

Even so, he believes the risk to Indonesia will not be too significant.

"I think for the middle class, they will try to make savings next year, save investment plus pay off debt," Tauhid said in the webinar "New Paradigm of Indonesia Tourism Industry Trend 2023" with Tiket.com online, Tuesday, December 13.

"However, I think what we expect for the middle, middle and upper class who spend more, including the tourism sector, is to keep tourism areas alive," he continued.

Furthermore, said Tauhid, the government also needs to take part so that the domestic economy is maintained and stable, while also anticipating the potential slowdown in exports and imports.

He said maintaining the impact of rising interest rates in the last two months is also something else that needs to be considered.

"There is also an interbank interest rate war, this is all offering and people will finally save more," he said.

As for the last effort, continued Tauhid, which can be done by the government, namely optimizing credit relaxation reactions and the tourism sector.

"I think this is important because tourism, which is said to have not taken advantage of it much, I think this is important, including MSMEs," he said.