Jakarta, CNBC Indonesia – President Joko Widodo (Jokowi) predicts that there will be quite a ‘terrible’ shock when a number of countries begin to tighten their fiscal flows.
Speaking at the 2021 National Coordination Meeting and Investment Service Award, Jokowi said that currently all countries are starting to try to reduce their budget deficits back to normal levels.
“Yesterday, all countries were also worried that if the deficit was returned to normal, inflation would also occur. The impact of this pandemic is really everywhere,” said Jokowi, Wednesday (11/24/2021).
In an effort to reduce the deficit, state spending will also be reduced. This situation, said Jokowi, would certainly cause a shock which until now has not been clearly calculated.
“Together, imagine. Tens of thousands of trillions are braked together because they want to return to the initial deficit. This is also worrying but has not been calculated,” said Jokowi.
Therefore, Jokowi emphasized that the acceleration of economic recovery cannot solely rely on the state’s financial treasury. According to him, there needs to be another reliable anchor.
“Investment is an anchor for economic recovery because if we focus on the state budget, even though I know the minister of finance is very prudent, we are very careful in managing our state budget,” he said.
(Cha Cha dance)
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