Sri Mulyani predicts global economic uncertainty
JAKARTA. Finance Minister Sri Mulyani Indrawati predicts that global economic uncertanty will continue to loom with signs of an economic recession.
According to Ms Indrawati, such condition is affected by factors such as the ongoing US-China trade war, protectionism, Brexit, fluctuating commodity prices, the modernisation of China's growth, security and geopolitical issues, and climate change.
The uncertainty, said Ms Indrawati, will increase the risk for global demand amid the trade war. The moderation of China's economic growth will also pressure Indonesia's trade balance considering China's status as Indonesia's primary trade partner.
The ongoing Brexit fiasco, she added, will also affect the trade prospect of Europe and the United Kingdom. "It will provide a negative sentiment to global financial markets," said Ms Indrawati at Djakarta Theater, Central Jakarta on Thursday (12/9).
Ms Indrawati added that global economic uncertainty will also pose risks for Indonesia's trade balance, state revenues, and subsidies. Thus, the government is currently trying to allocate quality expenditures, expanding the fiscal space, and control healthy and sustainable State Budget risks.
"This should be on the map. This highlights the importance of policy design that can create a balance between fiscal and non-fiscal aspects," said Ms Indrawati. (AM/MS)