As widely reported, various international financial institutions have predicted that the world will go into recession by early 2023. Ever since, the pulse of those flashing red lights quickened as markets grappled with this prediction, and in this case, will Indonesia also fall into recession?
The Indonesian Finance Minister Sri Mulyani has declared that Indonesia had succeeded in maintaining the momentum of our nation's economic recovery from the pandemic, Sri has estimated that Indonesia's economic growth would reach 5.5% by the third quarter of 2022 and in the short term, the Indonesian economy is still healthy and strong, as seen in the several indicators including mobility, retail sales index, and spending index, which is all still positive and expansive. She also said that she is aware of the potential recession in Indonesia, with a survey from Bloomberg that placed Indonesia as the 14th out of 15th Asian countries that are likely to experience a recession with a probability of 3%, far lower than Sri Lanka, which took first place with a recession probability of 85%.
Therefore, all policy instruments will be used, namely fiscal, monetary, and financial sector policies, along with other regulations to monitor the possibility of a recession, especially regulations from corporations in Indonesia. She also believes that the low recession probability for Indonesia reflects the resilience of domestic economic growth, indicators of the balance of payments, and the strong state budget.
State-Owned Enterprises Minister Erick Thohir has also shared his optimism that Indonesia would not go into recession in 2023.
“So, if ladies and gentlemen who are present today are feeling depressed, this means you are taking the wrong position because Indonesia will not be in a recession (in 2023)” Erick said at the Jakarta Convention Centre, Tuesday, October 11th, 2022.
This is certainly a piece of good news for the real estate market in Indonesia, especially around Central Jakarta, the downtown of Jakarta where the neighbourhoods are popular among expats and the upper class. Such as Menteng, the centrally-located and "old money" neighbourhood, and the site of countless embassies, villas, and colonial-era buildings. The fact that it's also located at the heart of Central Jakarta further adds to its appeal, making it one of Jakarta's most prestigious addresses. With the Indonesian economy rising, this should be the perfect time to invest in real estate in Menteng.
Menteng gives you the feeling of being prestigious and exclusive, it's definitely not your everyday neighbourhood. Will you be a part of the exclusiveness? We at Ray White Menteng are always ready to help and serve you for your property needs of Menteng. We're not just selling properties; we're also selling the best experience and services.
Source: The Jakarta Globe, CNN Indonesia, CNN International
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