“So if their economy contracted due to the pandemic and have not recovered, coupled with the current inflation, this will increase the complexity,” she added.
In addition, Sri Mulyani said a country’s monetary policy and fiscal conditions, its government and private debt as well as their ability to pay debts are also factors to consider.
Read: Sri Mulyani: Indonesia needs Rp3,500T to boost electricity generation, reduce carbon emission
With this array of indicators, Sri Mulyani is of the view that Indonesia’s economy is currently in good shape. According to Bloomberg mentions, the risk of Indonesia facing a recession is only 3 percent.
This figure is much lower than other countries struggling with economic pressures, such as Turkey, Argentina and even the United States. (un)