Need To Be Anticipated, Sri Mulyani Reveals A Number Of Global Economic Challenges

Minister of Finance Sri Mulyani. (Photo: Doc. ANTARA)

JAKARTA - The Ministry of Finance (Kemenkeu) revealed that there are several risks and uncertainties in the global economy in 2024 that will affect the State Revenue and Expenditure Budget (APBN) so that it needs to be anticipated.

Minister of Finance Sri Mulyani explained that the uncertainty of the global economy and the risk are still very high, as seen from various factors.

One of them is from the central bank of the United States, the Federal Reserve, which is expected to maintain high interest rates for a long time.

According to Sri Mulyani, the market hopes that there will be a decline in interest rates in the near future, but currently it is still in a high interest rate condition for a long period of time.

"This means that global liquidity will still be strict and the flow of funds to emerging countries including Indonesia will be affected or there will be a flow of funds that tend to come out," he said in a meeting with Commission XI of the DPR, Tuesday, March 19, 2024.

Sri Mulyani added that it is feared that this will reduce the cost of interest costs, because yields from securities interest rates will also be affected by the flow of capital and exchange rates against these countries.

Another risk of increasing geopolitical tensions has given uncertainty to various financial economic activities such as trade.

Because this geopolitical provides uncertainty to various economic, financial and trade policies. "Protectionism is getting higher, investment will be disrupted, of course, it will affect the performance of the global economy," he said.

Sri Mulyani said other challenges stem from digitalization, climate change and demographics where currently there is a tendency for population aging, especially in developed countries, to have a very destructive impact.

The development of artificial intelligence (AI) technology is second in global risk 2024, then climate change fills the top position of global risk.

"AI is now considered the top two or the second highest global risk 2024, then climate change is considered the top risk and an aging population will also have an impact on economic performance," he said.