Indonesia Already Feels The Signs of Global Recession, Minister Admits

Liputan6.com, Jakarta - Minister for Investment, Bahlil Lahadalia, revealed his concern of the impacts from the global recession. He expressed his concern despite the 5.31% growth of the Indonesian economy last year.

According to Bahlil, the exports have shown signs of weakening. It became a concern because exports were the foundation of last year's growth. The exports during the first quarter of 2023 are slowing compared to the previous quarter.

"Not as good as the Q4 of 2022. These are the signs of starting to go down," said Minister Bahlil Lahadalia during a press conference in Jakarta, Thursday (16/2/2023).

Bahlil is also anxious about the disturbance of incoming investment in 2023. Indonesia has a target of Rp1,400 trillion for investment this year, but the foreign investment during the Q1 is also pale compared to the last quarter.

"I just checked. The investment in the Q1 is not as good as Q4 2022," said Bahlil who added that the government needs good maintenance measures for foreign investments.

He also pointed out that the global economy would be bleak in 2023. Bahlil said his team were still calculating the impacts of the global recession toward Indonesia.

"The potential of recession is something that we cannot avoid, and we are still calculating the depth of recession," Bahlil explained.

The incoming general election 2024 also added Bahlil's concerns as the investment would be predicted to choose wait-and-see approaches. "We are in 2023, I say this year is not to be trifled with," he admitted.