Indonesia is not at risk, Purbaya dismisses viral economic warnings
Jakarta, Thekabarnews.com—Indonesia’s finance minister, Purbaya Yudhi Sadewa, has said nay to a number of economic research studies that people are sharing on social media. He says that many...
Jakarta, Thekabarnews.com—Indonesia’s finance minister, Purbaya Yudhi Sadewa, has said nay to a number of economic research studies that people are sharing on social media. He says that many assertions lack proof and fail to illustrate Indonesia’s economic robustness.
Purbaya remarked at a plenary cabinet meeting at the Istana Negara on Friday, March 13. Many were frightened that Indonesia’s economy could fall apart if political tensions across the globe caused oil prices to rise.
There is tough content on sites like TikTok and YouTube. Some people think it might have a huge effect on the economy. However, there is not any concrete proof that this is true.
“We should not be afraid. People on TikTok and YouTube who fear our economy will break apart have not looked at the numbers,” Purbaya said in front of President Prabowo Subianto.
Purbaya backed up his claim that Indonesia had dealt with rising oil prices before. He used examples from the past.
He talked about how much a barrel of Brent crude oil cost from 2007 to 2008. During that period, it climbed to more than $220.
Indonesia’s GDP expanded by roughly 4.6 percent even though prices went up a lot. Good fiscal and monetary policy made this growth possible.
“The rules about money and taxes were fair, yet we could still go bigger. We took care of it,” he replied.
Purbaya claimed that this kind of thing happened in 2011. At that time, the price of Brent oil was between $110 and $120 a barrel. Indonesia’s economy was still doing well.
He also added that after COVID-19 broke out, oil prices around the world shot back up to more than $100 a barrel. But Indonesia’s economy stayed strong.
The finance minister stated that these examples from the past illustrate that the economy does not necessarily get worse when energy costs go up or down around the world.
He did not mention anything about that. He did not say that, though. Instead, he talked about how crucial it is to have robust and coordinated monetary and fiscal policies. These policies keep the economy safe against shocks from outside.
“We can handle the effects of global turbulence as long as we have the correct monetary and fiscal policies in place,” Purbaya added.
People are paying closer attention to global energy markets right now because of political issues that could affect supply. For example, oil and gas exports could be banned from going to countries where there is war.
Economists predict that Indonesia’s economy will perform better when external problems arise. Such a scenario can happen if the government is steady and obeys the rules.
Purbaya closed by addressing the public and politicians. He said that Indonesia has dealt with these kinds of difficulties previously. Indonesia can do so again as long as its economy stays strong.
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