Head of the Presidential Staff Office Moeldoko said that Indonesia’s economic position is better than other countries despite being included in the list of 15 countries threatened with recession, according to a Bloomberg report.
Moeldoko said Indonesia was at the bottom of the list. He considered Indonesia’s condition to be quite good.
“Thank God we are still ranked 14th out of 15. We are at three percent risk,” said Moeldoko at the Presidential Palace in Jakarta on Monday 25th July 2022.
Moeldoko said he understands that there have been a number of increases in the price of basic commodities, such as cooking oil. However, he said the world economy is currently going through a difficult phase.
“I want to convey to the public that the global environmental conditions are indeed not in a good condition and our national economic conditions are relatively good,” he added.
Bloomberg published a list of 15 countries at risk of recession. Indonesia is in 14th place with a potential of three percent. Sri Lanka is in first place with a recession potential of 85 percent.
Countries in various parts of the world are facing inflationary challenges due to Russia’s invasion of Ukraine. The war has an impact on the scarcity and rising prices of goods.
Goldman Sachs CEO David Solomon estimates global inflation has not yet reached a climax. He said there was still the possibility of a recession due to current conditions.
“Every time you have high inflation and you have a tightening economy, you end up experiencing some kind of economic slowdown. So, I think the chances of us having a recession are high,” Solomon said, as quoted by CNN Business, on Thursday 21st July.