The Ministry Of Finance Has Expressed That It Is Preparing Steps To Anticipate The Impact Of US Recession On Indonesia

Rupiah (Photo: Antara)

JAKARTA - The Ministry of Finance (Kemenkeu) said it would anticipate the impact of the recession of weakening the economic growth of the United States (US) to Indonesia.

Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance Febrio Nathan Kacaribu said that anticipatory steps really need to be taken because the condition of the US economy is already below expectations.

"This is indeed moving, so of course we are first anticipatory. But of course we will continue to monitor this closely, because we will have to anticipate the turmoil," Febrio told the media crew, Tuesday, August 6.

According to Febrio, the current economic condition of the US is below expectations of the US unemployment rate which turns out to be higher than imagined.

"So, for example, the unemployment turned out to be higher than they imagined. Then it was seen that their policy interest rate was seen by the market, it should have been cut earlier," he said.

Febrio said that if you look at the current dynamics, namely from the US interest rate and expectations, it has changed from the beginning of the year. Where at the beginning of the year there is an estimated expectation for a three-time cut, then in the middle of the year and how many months later it changed.

"Now with the latest data, it's probabilitanya kita melihat konsensusnya mengarah ke cutungan yang lebih banyak," ujarnya.

Febrio explained that in the context of Indonesia's macro stability, the impact of US economic conditions on Indonesia was still positive for a while. Where, if the US policy interest rate is lowered, it will reduce the pressure for capital outflows.

"This means that our interest rate in the country, both in the Rupiah, especially, will be relatively attractive to portfolio investors. This is what we must monitor day by day, of course, we must monitor this change closely, so that the steps we take of course are also well measured," he said.