BANDUNG, unpas.ac.id – The threat of recession and trends of interest rate increase give huge impacts to the national economy.
In order to reduce the inflation-rate increase and anticipate the threat of recession, Bank Indonesia recently raised interest rates by 50 basis points to 4.75 percent.
The threat of recession must be responded by all levels of society, including millennials in the productive age of 25-40 years.
Economics observer and teacher at Universitas Pasundan, Acuviarta Kartabi said that millennials should start thinking about financial risks.
Although millennials generally have earned income, a recession will cause uncertainty about future economic conditions.
Tips on Facing the Recession Threat
Regarding on facing the recession threat, Acuviarta shared several tips for millennials.
“Millennial generation should be more selective in consuming things, since the budget is limited. Or, in economic term: Budget Constraint,” he said, on Saturday, 5 November 2022.
He also added that it is important to arrange the priority scale, have budget for emergency and not to have much debts with high rates of interest.
“We try, as possible as we can, to spend our personal budget, not banking ones; let alone illegal budget: such as online loans which have high interest,” he continued.
In terms of the pace of business, Acuviarta said that there is still market potential, but with a slightly lower price segmentation than the usual situation.
“Look for the right strategy to reduce prices, because there must be a response related to people’s income,” he explained.
Acuviarta also suggested that millennials should start to develop a community or expand their network.
In addition, the government is also responsible in optimizing the role of the productive age population as the motor of national development.
“Now is the era of digitalization, so maximize it for networking. Millennial businesses must also have an identity or characteristic to survive if a recession does occur,” he said. (Reta)**
