Luhut: Perfect Storm Is Hitting the World!

the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan (I Wayan Sui Suadnyana/detikBali)

The perfect storm is sweeping the world. This extraordinary storm is not even able to be faced by superpower countries. This was conveyed by the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan through his official Instagram account, Monday (7/11/2022).

“I described the condition of the world we live in currently being hit by a perfect storm. All countries are in bad condition, from developed countries to superpowers,” Luhut said.

“Especially developing countries which are very affected by the turmoil of war and disputes between countries that we never know when they will end.”

This big storm is inseparable from the COVID-19 pandemic, which has not yet fully ended. Aggravated by the war between Russia and Ukraine was the root cause of the food and energy crisis, causing a spike in inflation everywhere.

The situation is getting more complicated when developed countries change the direction of monetary policy. Such as the United States (US) which aggressively raised its benchmark interest rate and caused major turmoil in financial markets.

“This immediately affects commodity prices, plus the possibility of a recession that will occur and a decline towards deglobalization,” explained Luhut.

It is known that dozens of countries are now in danger of falling into a recession. The United States (US) has gone first, although the last quarter has shown a recovery. Then the European region and the UK will also experience the same problem.

China, which previously grew above 10%, now has to falter due to a series of unresolved problems. While other countries that have collapsed are Sri Lanka and Argentina.

Meanwhile, Recovery after the Covid-19 pandemic in Indonesia is going very well. Therefore, Bank Indonesia (BI) estimates that Indonesia’s economic growth will reach above 5.5 percent in the third quarter of 2022.

This was conveyed by the Governor of Bank Indonesia (BI) Perry Warjiyo in a press conference on the Results of the Periodic Meeting of the Financial System Stability Committee (KSSK) IV 2022, Thursday (3/11/2022).

“We are optimistic that economic growth will be higher than 5.5 percent, our estimates from various indicators, retail sales, consumer confidence, credit, as well as the current account, and good exports, all of which support us to be optimistic,” Perry said.

On the same occasion, Minister of Finance Sri Mulyani Indrawati also said that the improvement in the domestic economy continued, which was supported by the private sector which remained strong amid rising inflation.

In addition, domestic economic growth was also supported by increased non-construction investment, as well as maintained export performance.