Jakarta, CNBC Indonesia – People are now facing the problem of the 2023 recession. Campaigns that spread fear o alarm fear also inevitable. But will the threat of a recession next year be so scary?
Bhima Yudhistira, director of the research institute Center of Economic and Law Studies (CELIOS), admitted that there will indeed be a recession next year. Even so, according to him, people don’t need to be extravagant and wiser in managing finances before a recession.
“There will be a recession next year. If you have debt, pay it now because interest rates will rise. This means that lifestyle do not style. Lower-middle-class people do not To follow gaya crazy rich in the midst of a recession, he needs to be more careful, ”Bhima said in a statement workshop ahead of the G20 summit in Yogyakarta on Saturday (29/10/2022).
Meanwhile, for upper-middle income people, Bhima strongly recommends them to encourage higher government spending. According to him, those with high incomes contribute the most to the country’s business cycle.
Bhima explained that since April 2022 people with high incomes are aware of the problem of a recession next year, so they often refrain from shopping.
“They should have told them to spend their money,” Bhima said. “Up to 20% of the richest people in Indonesia, the highest spending controls over 40% of total household consumption.”
“So what to do? First, I agree with the government to ease taxes to increase consumption. Second, give positive encouragement to people [berpenghasilan tinggi] like these [untuk spending lebih banyak],” He added.
The issue of the 2023 recession arose in the midst of global uncertainty, where high inflation, tight liquidity and the geopolitical conflict between Ukraine and Russia have plunged the world economy to the brink of collapse.
Even so, Indonesia appears to be getting little relief as the International Monetary Fund (IMF) estimates that the Indonesian economy will continue to grow 5.3% this year and 5% in 2023.
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