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2023 Haunted by Recession, How We Should Respond

Denpasar – In the last few weeks the public seems to be haunted by a lot of speculation about the threat of a recession in 2023 that will hit the country’s economy. The number of media discussing this seems to give a warning to the public to prepare for the economic situation in 2023. Recession according to the KBBI is defined as sluggishness in trade, industry, and other economic activities that occur as a whole. (2/11/2022)

At the end of last October, the Deputy Governor of Bank Indonesia (BI) Dody Budi Waluyo, as reported by Bisnis.com, also stated that:

“It’s a sign that the world is not doing well. We are not afraid, but how do we mitigate it because now all countries are at war with the same threat,” he said in his remarks at the National Movement for Food Inflation Control (GNPIP).

Bali is an example of a region in Indonesia that was severely affected by the pandemic in the last two years and the Russian conflict which caused an energy crisis in Europe which resulted in a decrease in export demand quotas for handicraft goods such as furniture, non-knitted fabric products, jewelry, and fishery products. namely fish and shrimp, which are the main export commodities for the Bali region, are also currently in the shadows of the recession in 2023.

Figure 1. The Rector of the Universitas Pendidikan Nasional in an interview session on the issue of the 2023 recession

The Rector of the Universitas Pendidikan, Denpasar Prof. Dr. Ir. Nyoman Sri Subawa, S.T., S.Sos., M.M., IPM. ASEAN.Eng., as an expert in the field of economics, views the recession as an impact on the current global energy conflict and pandemic, which must be handled carefully. The government must synergize in formulating policies to support the economy in mitigating the impact of the global recession.

“Government policies have been aligned in supporting our export needs, looking for new export destination markets can be an option to support economic stability, from the government side too, it can reduce export duties so that it becomes a stimulus for craftsmen or business actors,” said Professor Sri Subawa in an interview.

Figure 2. Community Economic Activities in traditional markets

The current recession is indeed a frightening specter for local and global communities, but it must be known that economic turmoil must occur at some point in time. The public is expected to be able to face all existing situations with careful preparation, the current government with all its hard efforts will continue to try to find the best solution to anticipate the recession wave in 2023.

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