UGM economist Dr. A. Toni Prasetyantono, M.A. was concerned that European Union will be a global threat of crisis. It is because of the increasing debts of European countries that is potential to cause global economic crisis. “European Union has similar characteristics to those of the US in terms of great amount of debts. Currently, EU's debt is 81.8% of its Gross Domestic Product (GDP), almost the same as that of the US that reached 84%,†said Toni to the press after speaking in a discussion entitled “Great Thinker: Philanthropy of George Soros and Neo-Capitalism†at UGM Graduate School, Wednesday (24/3).
China is not a threat presently because it only has 17% debt of its GDP. However, we should pay attention to China's property sector that can potentially become a threat such as what happened in the US in 2008. “China is still okay in terms of foreign debts, but their property sector is rather worrying,†said the lecturer of Faculty of Economics and Business.
Meanwhile, Indonesia is in safe position with some 29% of foreign debt of its GDP. In the last two months the domestic economic growth even increased. “I predict that our economic growth will be 5.3% in the earlier months of this year, but looking at the record in the past two months, the growth can be over 6% this year,†he said. The better economic growth will have the better impact to the revision of the National Budget. “Our State Budget is good so that it gives good economic stimulus, too; therefore we need to revise the National Budget,†he explained.
Answering the questions from the press relating to the rejection by several members of the House of Representatives (DPR) to the meeting with Minister of Finance Sri Mulyani to discuss the state budget revision, Toni emphasized that this could harm everyone. “It is very disrupting, we know that our state budget has to be revised according to the latest condition because our economy is better now. The meeting with the Minister is important to discuss the revision. If not, it will harm all of us,†he explained. Toni also suggested those members to restrain and be professional, moreover that Sri Mulyani has not legally been proven guilty.