Global crisis now looming over Indonesia, says President Jokowi

Jakarta, The Gulf Observer: President Joko Widodo (Jokowi) asked people to have the same feeling in facing the global crisis that is now looming over Indonesia.

“We feel (like it is business as usual), even though the situation in all countries, including Indonesia, is in a global crisis,” he said when delivering his speech at a national coordinating meeting of the Crescent Star Party (PBB) here on Wednesday.

The threats that have crept up on nations include the global recession, financial recession, food crisis, energy crisis, as well as the impact of war and inflation, which have kept getting worse, he added.

A similar message, he said, was voiced by the managing director of the International Monetary Fund (IMF), Kristalina Georgieva, earlier this year.

Georgieva has predicted that a third of the world economy would be hit by recession in 2023, he said.

“This means that if there are more than 200 countries, it means that 70 countries will experience recession. In 1997 to 1998, when only a few countries were affected by the recession, (the crisis) destroyed our economy,” Jokowi said.

Quoting Georgieva, he said that in countries that are not affected, hundreds of millions of people feel like they are going through a recession.

He asked people to be grateful for Indonesia’s relatively positive economic situation.

“Thank God, we should be grateful, (economic growth) in the third quarter of 2022 was still at 5.72 (percent). The fourth quarter is only being calculated. At the end of the month, the rate will be announced. It is still very high,” he said.

Based on the latest information, he said, 16 countries are currently registered as IMF “patients”.

“In 1998, we were IMF’s patient because our economy was declining, our politics dwindled. This (year)? Sixteen countries have become IMF’s patients, and 36 countries are queuing by the IMF’s door; they want to be IMF patients. This means that the situation is very not normal,” he highlighted.

Jokowi emphasized that the information was not meant to scare the public, but as a warning so they can prepare to face the global crisis.

However, Indonesia’s competitiveness, coupled with even distribution of infrastructure in all provinces, has served to support its current economic stability, he added.