Universitas Gadjah Mada
Faculty of Economics and Business

On Thursday (23/06) the Indonesian Economist Association (ISEI) collaborated with the Faculty of Economics and Business Universitas Gadjah Mada (FEB UGM), Faculty of Economics and Business Universitas Indonesia (FEB UI), Alumni Family of the Faculty of Economics and Business Universitas Gadjah Mada (KAFEGAMA), and the Alumni Association of the Faculty of Economics and Business Universitas Indonesia (ILUNI FEB UI) in holding the second International Lecture Series with the title "Global Economic Prospects and the Implication for Economies in the Region and Indonesia".

The webinar aims to discuss current topics in business and economics and facilitate open discussions between scholars and policymakers. The event invited Dr. Cheng Hoon Lim, Assistant Director of the Western Hemisphere Department at the International Monetary Fund (IMF), and was guided by Cut Dian Agustina as moderator.

The event was opened by remarks from Dr. Didi Achjari, S.E., M.Com., Akt., as the Dean of the Faculty of Economics and Business UGM, and continued by Dr. Muhammad Edhie Purnawan, M.A., Ph.D. to deliver the keynote speech at the event.

In its development, the global economy will face new challenges in 2022. The war between Russia and Ukraine has caused severe shocks to the economy that have an impact on many countries, such as on commodity markets and financial relations between countries. The inflation that occurred was also caused by a decrease in the supply of critical commodities, especially in the food and energy sectors. Therefore, the monetary and fiscal authorities must move quickly to avoid further depreciation of the currency and capital.

Dr. Cheng Hoon Lim explained that in 2022, the IMF estimates that the global economy will decline by 0.8 and by 0.1 in Emerging Markets and Developing Economies (EMDEs). The impact on international trade that exists depends on the export and import activities of a country. Indonesia itself benefits from the trade that takes place in export activities. Meanwhile, it is also worth noting that the economic downturn in China will have a significant impact on countries in Asia.

In the future, some risks are expressed by Dr. Cheng Hoon Lim, such as rising prices of various commodities, accelerating monetary policy adjustments, slowing intra-regional trade, and many more. In addition, there are also future policy priorities. In fiscal policy, there are policies such as temporary measures to reduce the increase in the cost of living for vulnerable groups, and in the monetary sector, there is a tightening of monetary policy to achieve the inflation target.

Reportage: Zahra Dian