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| The illustration of economic recession. (Photo by Wildan PR of UMM) |
The threat of a global economic downturn in 2023 has become a recent discussion. Various trades, either domestically or internationally, are predicted to decrease. Nevertheless, Muhammad Khoirul Fuddin, S. E., M. E., one of the economic development lecturers of UMM, says that Indonesia will not be potentially affected by the recession.
It is because Indonesia initially experienced the economic recession during COVID-19, from the end of 2019 until 2020. After the policy of Large Scale Social Restrictions had been revoked, the economic downturn in Indonesia also decreased gradually. In 2021, the economic growth started to increase by 7,07% until the end of 2022. Now, it tends to be stable.
"Actually, the ones who experienced recession not only Indonesia but also the global countries. Indeed, from 2022 until 2023, in some countries, economic growth decreases. It eventually causes a global economic recession this year," explained Fuddin.
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Despite this, the global economic recession can hinder Indonesia's exporting and importing activities. Therefore, when global economic growth decreases, exporting activities are automatically impacted. It is because many outsiders cannot purchase goods due to the financial crisis in their home countries. Consequently, domestic goods will be hoarded because their production is accumulated, so they cannot be sold abroad.
"Besides affecting the exporting activities, the global recession also impacts the importing ones. The deficiency of daily needs causes it. As a result, countries cannot sell their goods and import materials from abroad also, so that many goods are not produced and are limited; meanwhile, demand for goods in Indonesia increases," added the Economic Development Lecturer.
Many people feel anxious that the 2023 economic recession will affect the financial flow in Indonesia due to the lack of needs. Responding to this anxiety, he advised that people must prepare to face the global economic recession. The lecturer also shared three tips on how to minimize economic recession.
The first is having to maintain the economic consumption rate. It can be done by fulfilling daily needs routinely. A stable economic consumption rate will make the prices of goods in the market more stable.
The second is investing. Making investments can be made in two ways: domestically or internationally. When investing domestically, the fund will flow into the Indonesian economic system, increasing its amount and reducing unemployment. Conversely, when investing abroad, the fund will move out. It will make the amount of the fund less. If the amount is less, it will hinder this year's economic growth.
"And the last is paying attention to the government's spending. When the government's spending becomes more and more, then economic growth should increase. It means that the government must constantly build infrastructures which will support the economic activities in the country," ended Fuddin (imh/git/wil)
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