Don’t be afraid of people next Doomsday year

Jakarta, CNN Indonesia

Former Vice President Jusuf Kalla he claimed to have called the finance minister Sri Muliani and asked not to frighten the public with the threat of an economic crisis.

JK said some of the crises caused problems, but there were also those that provided benefits.

“That’s why I told Sri Mulyani not to be afraid of people ending the world next year. Don’t call me that, don’t scare everyone. He was at the special anniversary dinner of the Kalla group at the Grand Indonesia Kempinski Ballroom, Friday (28/10).

According to him, Indonesia is not going through an energy and food crisis because it produces these goods independently. “We are different from other countries that have no energy. So we have to be optimistic, if there is a problem, we face it,” said JK.

Earlier, Sri Mulyani had assured that the global economy would plunge into a recession next year.

He said the recession was triggered by a reason, the policies of a number of global central banks that have been aggressive in raising benchmark interest rates in order to bring down the spike in inflation. Sri Mulyani said that politics would permanently suppress economic growth.

As a result, the recession becomes increasingly difficult to avoid. “The rise in interest rates is pretty extreme together, so the world is sure to go into recession in 2023,” said Sri Mulyani.

He also recalled that drafting the 2023 State Budget was not easy in the midst of the turbulent world economic situation. Sri said many changes have occurred along the way due to the uncertain and sudden situation.

Read more:  How to prepare for a recession and how long can it last?

The state budget 2023, which was initially prepared only considering COVID-19, was then confronted with the Russia-Ukraine war.

He pointed out that the tensions between the two countries have caused various crises such as food, energy and finance which have caused a sharp increase in oil and food prices. Some countries have also experienced debt crises due to this condition.

Meanwhile, the World Bank projects several countries into recession in 2023. This is because the interest rates of the benchmark central banks in a number of countries are rising.

World Bank President David Malpass said the central bank continues to raise the benchmark interest rate to reduce inflation.

An increase in the benchmark interest rate will hamper the process of global economic recovery. Therefore, the World Bank expects the world economy to slow to 0.5% in 2023.

“Global growth is slowing dramatically with the possibility of slowing further as more countries fall into recession,” Malpass said.

He is concerned that the economic slowdown will continue over the long term. Therefore, Malpass urged all countries to focus on increasing production so that supplies are abundant again, so that inflation can be suppressed.

On the other hand, the International Monetary Fund (IMF) said Indonesia was a bright spot when the world economy was gloomy. This was revealed by IMF CEO Kristalina Georgieva during a meeting with Finance Minister Sri Mulyani.

(mr / hope)

[Gambas:Video CNN]

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