Global Economic Recession Needs To Be Watched Out For But Don't Over-dramatize

Illustration. (Photo: Doc. Antara)

JAKARTA - University of Jember (Unej) economic observer Adhitya Wardhono PhD said the global economic recession needs to be watched out for but don't overdo it to cause people to get restless.

"Recessions need to be watched out for, but don't dramatize too much. Of course, optimism and good policy communication are needed to maintain public expectations," he said in Jember Regency, East Java, quoted from Antara, Saturday, November 13.

According to him, news related to the global economic recession must be objective and needs to be studied carefully because the comparison between global and domestic economic conditions needs to be explained straightforwardly.

"This is to avoid information asymmetrics and people's excessive fear of an economic recession that is predicted to occur in 2023," he said.

He explained that policy synergy is the key to economic stability which is realized through an accommodative national policy mix.

"In line with the national policy mix, the Bank Indonesia policy mix in 2023 must continue to encourage national economic recovery and maintain stability," said the monetary expert at the Faculty of Economics and Business, Unej.

This, among other things, is done by supporting the stabilization of the rupiah exchange rate, accommodative macroprudential policy, and accelerating the digitization of the payment system.

Adhitya said the point is that the direction of monetary policy is focused on maintaining stability, both the achievement of inflation targets, exchange rate stability, as well as macroeconomic and financial system stability in the midst of the process of national economic recovery.

"Although in this case, BI also has other policies that are directed to accelerate the national economic recovery pro-growth," he said.

Despite the increase in the issue of the threat of a global recession, he continued, domestic economic kitchen materials are still quite adequate because in the thrill sector, public consumption is still on a positive trend.

"The Consumer Confidence Index (IKK) is at the level of 117.2 in September or in the optimistic zone. From the production side, it is also on an expansionary path. The Manufacturing Purchasing Managers Index (PMI) which in August 2022 reached the level of 53.7," he said.

Likewise in the financial sector, it shows a still impressive performance. Indonesia's financial system is relatively strong in maintaining the capital and liquidity side of banks.