The global economy seems to slide from one crisis to another. Recovering from the COVID-19 scare, economies around the world are now facing possible recession next year.
The government has set regional minimum wages in 2023 through the Manpower Ministerial Regulation No. 18/2022 on 2023 minimum wages, allowing local administrations to increase the minimum wage limit by up to ten percent.
Many loopholes and constraints exist in Indonesia's JETP deal so that Indonesia or donor countries can backslide from commitments, and funding deals may be revised.
Mass layoffs are starting in Indonesia. As digital startup companies went bankrupt and cut employees some time ago, now the threat spilled over to other labor-intensive sectors.
Countries worldwide face economic shocks and high inflation due to rising energy costs and the expected global food crisis in 2023. Indonesia plans to raise awareness about these issues in the upcoming G20 summit.
Where will the next financial crisis begin?
More than half of the world saw an increased risk of civil unrest since the start of the COVID-19 pandemic. The Russian invasion of Ukraine worsened the situation, causing disruption to energy markets and food supply chains, and triggering price hikes.
The Indonesian government is looking at ways to "normalize" the energy subsidy budget. One-fifth of the state budget is at risk of being used up for this need this year.
Key points: energy price increase signal a rise; limited infrastructure budgets; social protections budget drop, while several tax incentive programs stop as the economy further recovered.
Foot and Mouth Disease (FMD) is spreading fast in Indonesia. Within three months, the disease has affected 447,257 cattle, buffalo, goats, and pigs in 22 provinces, forcing the government to establish a Specific State of Emergency for FMD.