Boediono Said the Sensitive Global Economic System Will Crisis
Indonesia Kanal. The Vice President in the era of Soesilo Bambang Yudhoyono, Boediono, said that the world economic system was vulnerable to instability and crisis. "This global economy is a market economy or capitalism with 19th-century signs at the global level," he said at Djakarta Theater, Jakarta, Wednesday, November 28, 2018.
According to the former Governor of Bank Indonesia, economic systems different from the national economy have far more complete tools to coordinate both macro, fiscal and monetary policies. With the complete equipment, Boediono said that the risk of a crisis in the economic system could be reduced. "These government signs are not in the current global economy, so they are prone to crises."
In the global economy, for example, Boediono said that no one was responsible for the development of the recent crisis. The impact is that all countries are confused and no one can coordinate. Therefore, the best step a country can take is to anticipate a crisis.
The anticipation of the crisis, said Boediono, can be done by being aware of or looking at variables that are closely related to the indicators of the crisis going forward. "What we see now, is that trade war problems between market players, for example, must have a negative impact on the world economy," said Boediono.
Boediono said that the negative impact felt in the country, one of which was exports. With the onset of the trade war, in general the value of Indonesian exports will decline. In addition, the Indonesian market can also be invaded by imported goods because the exporting countries to the US divert their markets to a new point after the US tariff policy.
On the other hand, there can also be a positive impact that is brought up by Indonesia. For example, said Boediono, the movement of investment into the country because industries in countries that are experiencing trade wars cannot produce optimally. "Hopefully there will be," said Boediono.
Another problem, is the price of oil. At present, oil prices are a risk in themselves because they cannot be predicted. Some time ago, the price of these commodities had surged above US $ 80 per barrel, while now the price has fallen again below US $ 60 per barrel.
"So, it must maintain the risk of fluctuating oil prices so as not to affect economic performance in the country," said Boediono. "Don't let our state budget become a hostage to the price of oil outside."
According to the former Governor of Bank Indonesia, economic systems different from the national economy have far more complete tools to coordinate both macro, fiscal and monetary policies. With the complete equipment, Boediono said that the risk of a crisis in the economic system could be reduced. "These government signs are not in the current global economy, so they are prone to crises."
In the global economy, for example, Boediono said that no one was responsible for the development of the recent crisis. The impact is that all countries are confused and no one can coordinate. Therefore, the best step a country can take is to anticipate a crisis.
The anticipation of the crisis, said Boediono, can be done by being aware of or looking at variables that are closely related to the indicators of the crisis going forward. "What we see now, is that trade war problems between market players, for example, must have a negative impact on the world economy," said Boediono.
Boediono said that the negative impact felt in the country, one of which was exports. With the onset of the trade war, in general the value of Indonesian exports will decline. In addition, the Indonesian market can also be invaded by imported goods because the exporting countries to the US divert their markets to a new point after the US tariff policy.
On the other hand, there can also be a positive impact that is brought up by Indonesia. For example, said Boediono, the movement of investment into the country because industries in countries that are experiencing trade wars cannot produce optimally. "Hopefully there will be," said Boediono.
Another problem, is the price of oil. At present, oil prices are a risk in themselves because they cannot be predicted. Some time ago, the price of these commodities had surged above US $ 80 per barrel, while now the price has fallen again below US $ 60 per barrel.
"So, it must maintain the risk of fluctuating oil prices so as not to affect economic performance in the country," said Boediono. "Don't let our state budget become a hostage to the price of oil outside."
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