JAKARTA – Since the economic crisis hit in 1998, Indonesia recorded a rise from economic growth. But 10 years later, in 2008, the crisis hit Indonesia again although this time Indonesia can survive.
Deputy Minister of Finance (Anny) Mahendra Siregar said Indonesia’s economy will recover totally from the crisis in 2018. This, according to the statement of the International Monetary Fund economist (International Monetary Fund / IMF), Olivier Blanchard.
“The history of post-1998 financial crisis, back in the past 10 years that made sense,” said Mahendra, when met at the Jakarta Convention Center (JCC), Senayan, Jakarta.
Mahendra said indicator is viewed from Indonesia’s economic growth is considered sustainable. According to him, the economic growth of six percent can still be improved. He gave an example, in the 1997-1998 era Indonesia recorded a decline in economic growth. “But in 2007 we are back to 6.1 percent, since we had six per cent to six per cent were counted the next 10 years,” he said.
Thus, he argues, the impact of the 2008 crisis can go faster in 2018. “The rate of return 10 years so if we count 10 years from 2008, a new fourth year, it took six years from now we need much of the global economy,” he explained.
Even so, the government should strengthen the factors that a pillar of the economy and remain wary of contagion that can occur from anywhere both sectors, so that the health of the economy could be more anticipatory.
“But on the other hand are not excessively nervous and anxious and now proven unique because our economy is not by chance several factors such as the size of the domestic economy to GDP, in terms of the growing population in the productive age, and middle income increased purchasing power,” said Mahendra.
Earlier, the IMF’s chief economist Olivier Blanchard said the current economic crisis is not yet 10 years old. However, he made sure the crisis will take some time before returning to its original level. “Europe must move forward with the integration so that the single currency bloc have experienced success,” Blanchard said in an interview with Hungarian business daily as quoted by AFP.
The economic crisis is now expected to last until the next decade. For that, we need solidarity and a stronger integration of fiscal policy and the economy in general. Blanchard had also raised the question of the United States (U.S.) and other developed countries.
He said that the U.S. economy is currently also have fiscal problems that have not been handled well. Meanwhile, Japan is facing a difficult fiscal adjustment and can take decades to solve its debt problems. Meanwhile, China’s special, he saw no difficulty at hand. “They (China) due to the possibility of a surge is taking care of its assets despite having slower growth than previously,” he added.