News / Asia

Indonesia Prepares to Mitigate Effects of Possible Global Economic Downturn

Indonesian Vice President Boediono, also former governor of the central bank, gestures to reporters upon arrival before the start of the televised speech of President Susilo Bambang Yudhoyono at Freedom Palace in Jakarta, Indonesia, March 4, 2010.
Indonesian Vice President Boediono, also former governor of the central bank, gestures to reporters upon arrival before the start of the televised speech of President Susilo Bambang Yudhoyono at Freedom Palace in Jakarta, Indonesia, March 4, 2010.

Indonesia's vice president says the government is taking a number of steps to mitigate the impact of a global recession that he says is likely to happen if the United States and Europe do not adopt strong measures to restore fiscal discipline.

Speaking to journalists in Jakarta, Indonesian Vice President Boediono, who holds a doctorate degree in economics, voiced concern that another global economic slowdown may soon occur.

“The chances of financial disruptions and global recession similar to those in 2007 and 2008, if not worse, have increased,” Boediono said.

In Europe and the United States, he said, there is a gap between the fiscal strategies needed to deal with growing national debts and the political will to do what is necessary.

In European countries like Italy, Greece, Ireland and Portugal, huge deficits and increased borrowing costs that are tied to the falling value of the euro could trigger a recession and lead to the break up of the euro monetary union.

Although Britain maintains it own currency, it has cut projections for the growth of its economy this year and next.  And, Indonesian Vice President Boediono said the recent failure of United States' congressional deficit reduction committee to reach a bipartisan agreement has left world markets uncertain.

Indonesia's economy is currently projected to grow at a rate of more than six percent next year, but could be adversely affected by downturns in Europe and America, he said.

“Currently our fundamentals are good, but we are fully aware that, if the global situation continues to worsen, our room of maneuver may quickly disappear,” he said.

Quoting a local adage he said Indonesia must be ready with the umbrella before the rains comes.

Indonesia must prepare for tightening of liquidity and the slowing of international investments and loans, said Boedino. And he announced the government plans to increase its foreign exchange reserve, help domestic banks maintain lines of credit and prepare a fiscal stimulus package that can be implemented, if needed, to keep domestic industries alive and people employed.

Although Indonesia is planning for the worse, Vice President Boediono expressed hope that Europe and the United States can resolve their political paralysis to prevent another global economic meltdown.

You May Like

Video One Year After Thai Coup, No End in Sight for Military Rule

Since carrying out the May 22, 2014 coup, the general has retired from the military but is still firmly in charge More

Goodbye, New York

This is what the fastest-growing big cities in America have in common More

Job-Seeking Bangladeshis Risk Lives to Find Work

The number of Bangladeshi migrants on smugglers’ boats bound for Southeast Asian countries has soared in the past two years More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Turkey's Main Opposition Party Hopes for Election Breakthroughi
X
May 22, 2015 10:23 AM
Turkey’s main opposition Republican People’s Party has sought an image change ahead of the June 7 general election. The move comes after suffering successive defeats at the hands of the Islamist-rooted AK Party, which has portrayed it as hostile to religion. Dorian Jones reports from the western city of Izmir.
Video

Video Turkey's Main Opposition Party Hopes for Election Breakthrough

Turkey’s main opposition Republican People’s Party has sought an image change ahead of the June 7 general election. The move comes after suffering successive defeats at the hands of the Islamist-rooted AK Party, which has portrayed it as hostile to religion. Dorian Jones reports from the western city of Izmir.
Video

Video Europe Follows US Lead in Tackling ‘Conflict Minerals’

Metals mined from conflict zones in places like the Democratic Republic of Congo are often sold by warlords to buy weapons. This week European lawmakers voted to force manufacturers to prove that their supply chains are not inadvertently fueling conflicts and human rights abuses. Henry Ridgwell reports from London.
Video

Video Class Tackles Questions of Race, Discrimination

Unrest in some U.S. cities is more than just a trending news item at Ladue Middle School in St. Louis, Missouri. As VOA’s Kane Farabaugh reports, it’s a focus of a multicultural studies class engaging students in wide-ranging discussions about racial tensions and police aggression.
Video

Video Mind-Controlled Prosthetics Are Getting Closer

Scientists and engineers are making substantial advances towards the ultimate goal in prosthetics – creation of limbs that can be controlled by the wearer’s mind. Thanks to sophisticated sensors capable of picking up the brain’s signals, an amputee in Iceland is literally bringing us one step closer to that goal. VOA’s George Putic reports.
Video

Video Afghan Economy Sinks As Foreign Troops Depart

As international troops prepare to leave Afghanistan, and many foreign aid groups follow, Afghans are grappling with how the exodus will affect the country's fragile economy. Ayesha Tanzeem reports from the Afghan capital, Kabul.
Video

Video Poverty, Ignorance Force Underage Girls Into Marriage

The recent marriage of a 17-year old Chechen girl to a local police chief who was 30 years older and already had a wife caused an outcry in Russia and beyond. The bride was reportedly forced to marry and her parents were intimidated into giving their consent. The union spotlighted yet again the plight of many underage girls in developing countries. Zlatica Hoke reports poverty, ignorance and fear are behind the practice, especially in Asia and Africa.
Video

Video South Korea Marks Gwangju Uprising Anniversary

South Korea this week marked the 35th anniversary of a protest that turned deadly. The Gwangju Uprising is credited with starting the country’s democratic revolution after it was violently quelled by South Korea’s former military rulers. But as Jason Strother reports, some observers worry that democracy has recently been eroded.
Video

Video California’s Water System Not Created To Handle Current Drought

The drought in California is moving into its fourth year. While the state's governor is mandating a reduction in urban water use, most of the water used in California is for agriculture. But both city dwellers and farmers are feeling the impact of the drought. Some experts say the state’s water system was not created to handle long periods of drought. Elizabeth Lee reports from Ventura County, an agricultural region just northwest of Los Angeles.
Video

Video How to Clone a Mammoth: The Science of De-Extinction

An international team of scientists has sequenced the complete genome of the woolly mammoth. Led by the Swedish Museum of Natural History in Stockholm, the work opens the door to recreate the huge herbivore, which last roamed the Earth 4,000 years ago. VOA’s Rosanne Skirble considers the science of de-extinction and its place on the planet
Video

Video Blind Boy Defines His Life with Music

Cole Moran was born blind. He also has cognitive delays and other birth defects. He has to learn everything by ear. Nevertheless, the 12-year-old has had an insatiable love for music since he was born. VOA’s June Soh introduces us to the young phenomenal harmonica player.

VOA Blogs