"We will not be complacent, we will remain vigilant," she affirmed at a press conference on the 2022 G20 Indonesia side activities in Nusa Dua, Badung, Bali, on Wednesday.
Therefore, all policy instruments will be used, namely fiscal, monetary, and financial sector policies, along with other regulations to monitor the possibility of a recession, especially regulations from corporations in the country, the minister emphasized.
The Bloomberg survey ranked Indonesia 14th with a recession probability of 3 percent, far lower than Sri Lanka, which took first place with a recession potential of 85 percent.
Related news: Indef sees economy growing 2% in Q2, recession easing
Below Sri Lanka were New Zealand with a recession probability of 33 percent, South Korea (25 percent), Japan (25 percent), and China (20 percent).
Minister Indrawati said she believes that the low recession probability for Indonesia reflects the resilience of domestic economic growth, indicators of the balance of payments, and the strong State Budget (APBN).
"From the corporate side as well as from our household, we are also relatively good," she added.
According to the minister, Indonesia's financial sector has remained relatively strong since the global crisis of 2008–2009. The nation’s resilience has improved and the risk of bad bank loans has been maintained. This illustrates that all sectors have learned from the global crisis of 2008–2009, she disclosed.
“But, we still have to be vigilant because this condition will last until next year. Global risks regarding inflation and recession or stagflation are very real and will become one of the important topics to discuss during the Indonesian Presidency of G20," she said.
Related news: Positive growth in Q2 due to collective effort: Presidential Staff
Translator: Agatha Olivia V, Resinta S
Editor: Rahmad Nasution
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