TEMPO.CO, Jakarta – Former Minister of Finance Muhammad Chatib Basri revealed several discussions at the 2023 World Economic Forum (WEF) Annual Meeting in Davos, Switzerland, particularly regarding new developments in the global economy. He again said that the probability of a recession against Indonesia is still relatively small.
“What Indonesia needs to anticipate is a price reduction commodity and energy will have an impact on Indonesia’s exports,” he said in a short video uploaded to his personal Instagram account, quoted on Saturday, January 21, 2023.
Baca: Chatib Basri Talks about the Impact Limits of the Global Recession on the Indonesian Economy
However, said Chatib, as stated several times before, because of Indonesia’s export share of GDP only 25 percent then the impact will be very limited. “Because of that I still think that the probability of a recession against Indonesia is still relatively small,” he said.
He also said that there are signs that inflation is decreasing. However, the labor market remains very tight in both the United States and Europe. The implication is that it appears that central banks in the United States as well as those in Europe are yet to lower interest rates soon.
However, Chatib said, there were positive things, namely the reopening of the Chinese economy from the zero Covid-19 policy which had a good impact. However, there are still risks in the medium to long term.
“Another thing that needs to be considered is that the increase in interest rates will certainly have an impact on the balancing effect on Indonesia,” said Chatib.
At the WEF Annual Meeting 2023, the Minister of Investment/Head of the Investment Coordinating Board (BKPM) gave a speech on Thursday, 18 January 2023. Bahlil revealed that the Covid-19 pandemic had a significant impact on global supply chains because the world was only focused on one particular area to build centers manufacture.
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