Sri Mulyani Being Cautious Of The Potential Recession Of Indonesia, Will Be An Important Discussion At The G20 Meeting

Minister of Finance Sri Mulyani Indrawati. (Photo: Doc. Setkab)

JAKARTA - Minister of Finance (Minister of Finance) Sri Mulyani is aware of the potential for a recession to haunt Indonesia because Indonesia is ranked 14th out of 15 countries in Asia that are likely to experience an economic recession, based on the latest Bloomberg survey.

"We will not be complacent, we remain vigilant," said Minister of Finance Sri Mulyani at a press conference for the 2022 G20 Indonesia Side Activities in Nusa Dua, Badung, Bali, as reported by Antara, Thursday, July 14.

Therefore, Minister of Finance Sri Mulyani emphasized that all policy instruments would be used, both fiscal, monetary, financial sector policies, to other regulations to monitor the possibility of a recession, especially regulations from corporations in the country.

In the survey, Indonesia is ranked 14th with a recession probability of three percent, far from Sri Lanka which occupies the first position with a recession potential of 85 percent.

Under Sri Lanka, there is also New Zealand with a percentage of 33 percent, South Korea with 25 percent, Japan with 25 percent, and China with 20 percent.

Although she will not be complacent, Sri Mulyani believes that the very low percentage of Indonesia's potential recession reflects the resilience of domestic economic growth, indicators of the balance of payments, to the strong State Budget (APBN).

"From the corporate side as well as from our household, we are also relatively good," added the Minister of Finance of the Republic of Indonesia.

According to Sri Mulyani, Indonesia's financial sector has been relatively stronger since the global crisis in 2008-2009. In this way, Indonesia's resilience will improve and the risk of bad bank loans will be maintained. This illustrates that all sectors learned from the global crisis in 2008-2009.

"But we still have to be vigilant because this will last until next year. Global risks regarding inflation and recession or stagflation are very real and will become one of the important topics of discussion at the G20 Indonesia," said Minister of Finance Sri Mulyani.