Jokowi Says Indonesia Safe from Economic Recession Amid Sluggish Global Economy
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29 February 2024 15:16 WIB
TEMPO.CO, Jakarta - President Joko Widodo or Jokowi said the chances of economic recession in Indonesia are still very small. According to the president, the probability of sluggish economic activity in the country is much lower than in large countries such as the United States, the UK, and Japan.
"We should be grateful, Indonesia's [recession] probability is still at 1.5 percent. This is what we must protect," said Jokowi on Wednesday, as broadcasted by the Presidential Secretariat.
He said this figure was much lower than other countries that are likely to experience an economic recession soon. “The probability of a recession has hit developed countries. For example, Germany is already at 72 percent. The E is also at 60 percent, while the United States is at 40 percent," Jokowi explained.
According to the president, several factors influence the sluggish global economy, including armed conflicts in several regions which led to sharp fiscal policy adjustments for war.
In addition, Jokowi said that many countries implemented food protection policies, which recently hit 1,348 policies. That number has tripled in a decade, “and this will continue to increase”, the president warned.
Even so, Jokowi claimed that Indonesia still succeeded in maintaining a strong national economy. "Praise be to God, in the midst of continuous world crises, hard-to-calculate economic uncertainty, our economy remains sturdy and considered the top three economies with good economic growth based on G20," he said.
He also claimed that Indonesia has succeeded in reducing the Gini ratio to 0.388 percent. Meanwhile, the poverty rate fell by 9.36 percent, the unemployment rate fell by 5.32 percent, and the inflation rate was at 2.57 percent.
"Even though we see good numbers, I need to remind you that we have to be careful, we have to remain vigilant, because of the growing complexity of future global competition," the president remarked.
SULTAN ABDURRAHMAN
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