Early warning: People cross a main road outside a shopping mall during afternoon rush hours in Jakarta. Jokowi reckons a global recession may start early next year. — Reuters新2网址最新登录（www.99cx.vip）实时更新发布最新最快最有效的新2最新登录网址,包括新2手机网址,新2备用网址,皇冠最新网址,新2足球网址,新2网址大全。
JAKARTA: Multiple high-ranking government officials have raised serious concerns about the economic hardships to be faced in 2023, noting the necessity to mitigate such risks.
In a keynote address at the National Investment Meeting held on Wednesday, President Joko “Jokowi” Widodo explained that Indonesia and many other countries were facing economic woes that will be prolonged into 2023, and he expects a global recession to start “early next year”.
Following the Russian military invasion of Ukraine, hopes of an economic recovery occurring in 2022 were dashed as trade and financial sanctions hampered the flow of goods and services among nations across the globe, which triggered multiple problems including sluggish economic growth, rising inflation, as well as higher interest rates.
Indonesia maintained an impressive 5.72% year-on-year gross domestic product (GDP) growth in the third quarter of this year, while bringing down inflation to 5.71% in October from 5.95% in the previous month.
However, signs of a slowdown have become more visible in recent days as the country’s manufacturing purchasing managers’ index, an indicator of industry health by S&P Global, has fallen in October with export orders being the main factor.
The country’s currency has also taken a beating, with the rupiah depreciating by 10.5% year-to-date to 15,743 rupiah per US dollar, according to state-owned Bank Mandiri as of Tuesday.,
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“We all need to have the same feeling, a mutual sense, an agreement that the current situation is not easy. Hardships will happen to all countries,” Jokowi said.
To face these hardships, he called for fiscal and monetary policymakers to be “careful” in making economic decisions due to the high-risk situation, where the world is “not normal”.
One of the main tasks that the policymakers need to carry out, he said, is to attract as much global investment into the country as possible, as he forecast that nations would scramble for capital inflows. He said that a lack of capital inflow growth would lead to slower money circulation.
To fulfil the target of 1,400 trillion rupiah (RM392bil) in investment realisation in 2023, Jokowi has instructed his officials to ensure the best treatment of investors, so as not to jeopardise the trust that the country has earned in recent times. Other issues that he said needed fixing were the country’s one-single submission investment platform, where licensing has actually begun to take much longer.
“Be careful, investment is the key,” the president continued.
Coordinating Maritime Affairs and Investment minister Luhut Pandjaitan said at the same event that although the impact of the global recession on Indonesia would be milder compared with European countries, the government would mitigate risks.,
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