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Domestic political climate increases chance of recession: Expert

Tempo - October 4, 2019

Eko Wahyudi, Jakarta – Center for Indonesian Policy Studies (CIPS) researcher Pingkan Audrine Kosijungan said the government should take preventive measures to safeguard its national economy from the global recession.

Pingkan mentioned a number of factors that may increase the possibility of a recession in Indonesia.

"The government needs to react to at least two main factors in mitigating the global economy, which is nearly entering a recession," said Pingkan in a written statement on Friday.

First is the things that happen domestically, which include the stability of social and political condition that heavily affects investment growth. The uncertain political condition may push investors to conservatively invest capital in Indonesia.

"This is evident in the large waves of street protests demanding the parliament review a number of publicly troublesome and controversial unpassed bills," said Pingkan, adding that the protests had caused negative sentiments in the market.

The second factor is related to external conditions that involve global investors or trade partner countries. These two factors pose real threats to Indonesia's investment climate.

Source: https://en.tempo.co/read/1255862/domestic-political-climate-increases-chance-of-recession-expert