The World Bank predicts recession in 2023, how prepared is Indonesia?

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Illustration. (IO/Muhammad Hidayat)

This must be anticipated because it will weaken purchasing power. He assessed that the large vulnerable population in Indonesia will be the most affected if a turmoil occurs so this group must be given social protection. “Not only the poor, the at-risk-of-poverty community should also be given social assistance.”

Furthermore, the government should also anticipate capital flight from developing countries. “That’s why we have to prepare a crisis protocol to beef up readiness of the banks so that in the event of default it will not spread like in the 1998 and 2008,” said Bhima.

Read: BI: Indonesia’s external debt stands at US$185.6B

MSME players should also receive through cheap financing and direct capital assistance to help them join the digital ecosystem more quickly. These steps must be pursued in order to protect the Indonesian economy, which is actually booming after the Covid-19 pandemic. (rr)