TheJakartaPost
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Indonesia’s countercyclical fiscal policy and quality spending
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A bank staff member counts banknotes at a bank in Jakarta (Antara Photo/Muhammad Adimaja))
T
he global economic outlook remains uncertain and has become even more uncertain for a number of reasons, such as unpredictable moves by United States President Donald Trump, geopolitical tensions, a trade war, the sharp fluctuation in oil prices and the Chinese economic slowdown.
Economists and analysts have noted that the next recession could be upon us in the next few years, and no country can hide from the global storm when it hits, including Indonesia.
When the 2008-2009 global financial crisis (GFC) triggered by US subprime mortgage defaults hit nations all over the world, Indonesia managed to weather the storm and was able to grow at 4.6 percent in 2009.
The country’s economic growth further rose to 6.2 percent in 2010, thanks in part to countercyclical fiscal and monetary policies.
