JAKARTA - Deputy Director of the Institute for Development of Economics and Finance (INDEF) Eko Listiyanto is optimistic that Indonesia can escape the recession even though the world is predicted to be dark due to the recession in 2023. One of the factors is because the country's economy is starting to recover and inflationary pressure is starting to slope.
"As long as Indonesia can optimize the positive pace of domestic economic recovery, the risk of a recession next year can actually be avoided," said Eko in his statement quoted by Antara, Monday, October 17.
Eko hopes that the government will continue to maximize the positive trend of domestic economic growth in order to avoid this threat. According to him, optimizing the domestic economy to avoid recession is very necessary because currently Indonesia's economic openness is still relatively low.
He considered that the recession in 2023 was different from what happened in 2020. At that time all countries were almost entirely affected by the COVID-19 pandemic.
"This is also different from the 2020 recession where almost all countries experienced a recession due to the uncontrolled case of the pandemic," he explained.
Meanwhile, he continued, Indonesia is considered to be more prepared in dealing with the threat of crisis so that it is hoped that Indonesia can escape the recession.
"Currently, the level of readiness is better. However, the short-term impact on the risk of capital outflows really needs to be watched out so as not to make them vulnerable to the Rupiah exchange rate," said Eko.
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