Global Recession In Front Of The Eye, Government Prepares Export Rescue Scenarios

JAKARTA - The government through the Ministry of Finance (Kemenkeu) is known to have drawn up a strategic plan to maintain Indonesia's export performance next year.

Expert Staff to the Minister of Finance for Tax Compliance Yon Arsal revealed that this step was taken as an effort to mitigate in the midst of the projected global economy which would be under deeper pressure than the 2022 period.

"Of course we will continue to pay attention to this (global recession) from time to time, approximately the first impact will be in which area," he said when answering questions from the media crew at a press conference on the realization of the 2022 State Budget this week.

According to Yon, the world's economic situation which is no better next year requires the government to increase vigilance in line with the optimistic attitude that is maintained.

"With the potential for a global recession, this could cause our exports to be delayed. Of course, the government will pay close attention to what the impact will be on important sectors, such as the manufacturing industry and from sectors in the trade area," said Yon.

Sri Mulyani's subordinate also ensured that the government was ready to take responsive and adaptive policies in balancing the situation in the future.

"Of course we will continue to see what the development looks like because this will still be very dynamic," he stressed.

For information, the forecast about the world's economy which is increasingly gloomy is reflected in the minutes of the latest IMF which revised down global economic growth to 3.2 percent. This figure has actually dropped to 2.5 percent in 2023.

Meanwhile, the main factor in the decline in productivity was triggered by the outlook for the top three world economies that would collapse, namely the United States, China, and the European Region.

Meanwhile, Indonesia's export achievement in September 2022 was US$ 24.8 billion. The book grew 20.2 percent compared to September 2021 (year on year/yoy).

However, the impact of the slowdown has been felt as evidenced by a decrease in the value of exports when compared to the August 2022 record of 27.8 billion US dollars.

To note, Indonesia's foreign trade performance has been quite convincing in the last two years and has played a major role in the resilience of the national economy.

VOI noted that the trade balance until last month experienced a surplus of 4.99 billion US dollars. The incision extends the record surplus that has occurred since May 2020.