Jakarta, CNBC Indonesia – The Minister of Finance, Sri Mulyani Indrawati, revealed unpleasant news that would afflict the Indonesian economy. Indonesia is very likely and will definitely enter a recession!
First of all, Sri Mulyani talked about the recession that took place in Singapore.
“If the recession that happened in Singapore because they are a country very dependent on international trade and with various steps to do their PSBB brake circuit, then all activities will be stopped plus the global environment is very weak,” said Sri Mulyani who was met at the Parliament Building, Wednesday (15 / 7/2020).
Sri Mulyani explained, the economy of Singapore depends on the global economy. Because exports are more than 100%.
“So that the economy is small, its domestic demand cannot substitute. Therefore, the decline from Singapore is very large, because indeed there is no international trade which has been the engine of growth.”
How about Indonesia?
“We are certainly wary, because after all Indonesia engine of growth “We consume, invest, and export. Today the government uses all its budgetary mechanisms to substitute weakening on the consumption side and on the investment and export side,” he said.
Sri Mulyani added, the state budget could not run alone, for that the government encouraged the banking sector to recover soon.
“So we use the placement of government funds in banks with low interest rates, we launch loans that are given collateral so that between banks and corporations, especially MSMEs, they immediately recover, because it is one of the blood from the economy, so that the engine can run again,” he explained.
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