Saturday, 14 December 2019

World Bank Reminds Jokowi of Possible Global Economic Crisis

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Markus Wisnu Murti

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  • President Joko Widodo speaks in a press conference at the State Palace on the planned relocation of the country's capital in Jakarta, Monday, August 26, 2019. The president officially announces the government will relocate the capital to East Kalimantan. ANTARA/Akbar Nugroho Gumay

    President Joko Widodo speaks in a press conference at the State Palace on the planned relocation of the country's capital in Jakarta, Monday, August 26, 2019. The president officially announces the government will relocate the capital to East Kalimantan. ANTARA/Akbar Nugroho Gumay

    TEMPO.CO, Jakarta - The Country Director of the World Bank Indonesia, Rodrigo A. Chaves, met with President Joko “Jokowi” Widodo this morning at the Presidential Palace in Jakarta. In the meeting, Rodrigo reminded the government of a possible global economic weakening.

    “The risk of a global economic recession has increased and there are several points that need to be monitored in the current geopolitical situation. Indonesia needs to constantly monitor this and prepare the necessary steps,” said Rodrigo today.

    Among many of his recommendations, one suggests Indonesia improve its current account deficit with foreign direct investment (FDI), which is seen as the best solution to increasing capital and foreign portfolio flow.

    He said the Indonesian government needed to provide global investors with legal certainty that described stable and clear rules. The World Bank Indonesia Country Director also mentioned that having a strong basis in macro management will contribute to maintaining financial conditions, such as human resources, infrastructure, FDI, taxations, and structural reform.  

    AHMAD FAIZ