JAKARTA: Indonesia's Financial Services Authority (OJK) predicts a possible global economic recession next year, possibly earlier.
The OJK chief, Mahendra Siregar, said this during a press conference with board members of the agency here on Monday, according to Antara news.
"But what we cannot predict is how serious will the recession be and how long it will last," he said and that likely, the Indonesian economy will continue to grow above five percent this year and next year.
Because of this, global and domestic economic conditions must be viewed from a complete perspective, he said. The OJK also has not specifically revealed any relaxation of policies.
Mahendra assured the OJK and the financial services sector are making constant efforts to maintain sustainable economic growth, in line with the government's target.
"If, in the next development, we feel that appropriate policies are needed to achieve the target, of course, we will formulate and endorse (the policies)," he said and noted based on the latest developments, economic growth and stability can be well maintained.
Further, the financial sector is optimistic about domestic economic stability though it will continue to be realistic by keeping a watch for the risks of transmission from the increasingly formidable global economic condition.