President Asks For Economic Targets To Be Developed Reflecting Recession Vigilance

President Jokowi/DOK PHOTO via Instagram @jokowi

JAKARTA - President Joko Widodo asked the ranks of ministries/agencies to set an economic growth target that reflects caution against global economic risks, such as recession.

"Anticipation in preparing the growth target must also reflect caution but optimism and credibility so that we must maintain it," said President Jokowi at the Plenary Cabinet Session for Ramadan Preparation and Eid Al-Fitr 1445 H, Government Work Plan, Macro Economic Framework (KEM), and Fiscal Policy Principles (PPKF) 2025 at the State Palace Jakarta, reported by ANTARA, Monday, February 26.

In his remarks at the beginning of the plenary session, President Jokowi highlighted the situation and risks of global economic uncertainty that affect the macroeconomic framework in 2025.

The Head of State said the economies of several countries such as Britain and Japan have entered a recession.

"We know that all of the countries have entered a recession like Japan, England, which has just entered the recession process," said President Jokowi.

Therefore, the President requested that the ranks be able to anticipate by carefully drafting economic growth targets, but remain optimistic and credible.

In addition, the President also requested that the central and regional governments sharpen the budget and prepare alternative plans (contingency plans) in the event of turmoil or an economic crisis.

"Strengthen the focus of the central and regional governments by preparing alternative plans if there is turmoil and crisis," said Jokowi.

In comparison, Japan's economy reportedly slipped into recession after two quarters of contracting in the third and fourth quarters of last year.

According to Japanese government data on Thursday (15/2), the country's economy shrank at an annual rate of 0.4 percent in the October-December period due to weak spending power.

Real gross domestic product (GDP), the total value of goods and services manufactured in Japan, shrank 0.1 percent from the previous quarter, according to the government's initial figure. According to the Japanese Cabinet Office, this marks a contraction for the second quarter after a 0.8 percent drop recorded in the third quarter of 2023.

Meanwhile, according to data from Office for National Statistics, the UK economy reportedly contracted by 0.1 percent in the third quarter of 2023. This negative economic performance continued in the fourth quarter of 2023 with a decrease of 0.3 percent.