TEMPO.CO, Jakarta – Lo Kheng Hong sure that Indonesia will not be one of the countries that will experience recession in 2023. The seasoned investor, nicknamed the Indonesian Warren Buffet, admits that he is quite optimistic about the current state of the Indonesian economy.
“Optimistic, it doesn’t look like a recession,” Lo Kheng Hong said during a podcast interview aired on YouTube channel WinMax Gallery, as quoted Saturday, Dec. 10, 2022.
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3 factors that make RI not experiencing a recession
The man colloquially known as Pak Lo went on to explain that there were at least three things that made him confident that Indonesia would not go into recession next year.
First, the value of Indonesia’s abundant commodity exports in recent times. A number of main export products include coal, crude oil or crude palm oil (CPO).
“I see that Indonesia exports a lot of raw materials. Coal ah (a lot), the CPO also exports ahreceive billions of dollars,” Mr. Lo said.
Second, national banks are currently pocketing quite large profits. PT Bank Central Asia Tbk. or BCA, for example, in the three quarters of this year made a profit of IDR 28 trillion.
Likewise with public banks such as PT Bank Mandiri Tbk. and PT Bank Rakyat Indonesia Tbk. each recorded a profit of IDR 30 trillion and IDR 39 trillion. If a recession is threatened, according to Pak Lo, banks should be classified as troubled institutions.
Next: But the facts on the ground…
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