Indonesia’s economic challenges will be external in nature: Indrawati

I don’t know what will happen. It depends on your data. Whatever it is, we have to anticipate’s the same in europe

JAKARTA (ANTARA) – Challenges hampering Indonesia’s economy will be external in nature, such as the uncertain geopolitical situation and policy aggression of developed countries, said Finance Minister Sri Mulyani Indwati. .

Geopolitical pressures, including war, are highly unpredictable given that the world was only going to one day focus on a war between Russia and Ukraine and shift to Taiwan and China, she said. It pointed out.

The uncertain geopolitical situation will cause a range of repercussions, including energy, food and fertilizer price crises due to the war between Russia and Ukraine, she said here Friday in a book on keeping Indonesia safe from COVID-19. It was highlighted in the soft launch.

Moreover, the Federal Reserve’s decision to aggressively raise interest rates adds further challenges to various countries, including developing countries such as Indonesia.

Indrawati likened the Fed’s decision to aggressively raise rates to someone using high doses of antibiotics to cure an illness.

“It’s already using very powerful policy tools. Who will the antibiotics hit first? Is it disease or inflation? Is it growth or excess?” she said. It pointed out.

The Fed’s actions, initially aimed at keeping inflation down, would only stall economic growth if the U.S. recovery infrastructure and institutions were not yet strong, the minister opined.

“You never know what’s going to happen. It depends on the data. Whatever it is, you have to predict it. It’s the same in Europe,” she said.

No one knows what the future will look like when data will be an important aspect of observing potential future incidents and predicting spillovers from developed country policies.

“What we need to address are the ramifications from the economies and policies these countries adopt,” she said.

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