July 26, 2022 – Indonesia becomes one of the countries that is surrounded to inflation by ASEAN countries. This inflation is due to the Russia-Ukraine war which had an impact on rising prices for food, commodities, energy, and finances. The surge in inflation has happened not only in Indonesia but also in America and Europe, also including ASEAN countries such as Malaysia and Vietnam.
Indonesia recorded up to a 4,35 percent inflation spike in June 2022, the highest its ever been since 2017. In addition to the rise of food and commodities, domestic inflation was also driven by price increases regulated by the government such as fuel (BBM) and electricity which are not subsidized by the government.
Indonesia is among Bloomberg’s 15 countries threatened by recession
Bloomberg has released a list of 15 countries with a risk of recession. Indonesia is ranked 14 out of 15 countries with a potential recession of 3 percent. Sri Lanka is the first on the list with a potential 85 percent recession.
However, the Head of the Presidential Staff Office Moeldoko said that Indonesia’s economy is doing well compared to countries within the list of 15 countries threatened by the recession by Bloomberg.
“We are grateful that Indonesia is ranked 14 out of 15 on the list,” Moeldoko said in THE Presidential Palace on Monday (25/7).
He claims that the inflation in the country is far better than in other countries. He also said that the economic growth in Indonesia is in a good condition. Moeldoko empathizes with the rise of prices in commodities like cooking oil, but he said that it’s because the world’s economy is in a difficult time.
“I want to tell the public that the global economy is indeed not in a good condition and reassure that our national economic conditions is relatively good,” he said.
CEO Goldman Sach David Solomon predicted that global inflation has yet to reach its climax. There is still a probability that a recession will happen due to the current world’s condition.
