JAKARTA (JP): Against the backdrop of a possible U.S. recession, which has sent stock markets across the globe tumbling, the government is preparing measures to safeguard the country's economic stability.

"With this situation, the indicators in the state budget, and for economic growth and stability have changed drastically," Coordinating Minister for the Economy Boediono said Tuesday after a meeting with other top government officials.

"Furthermore, we can almost be sure that there will be a U.S. recession as we see the ongoing prospects."

Analysts have predicted that the United States, the largest economic power in the world, may suffer a recession triggered by housing and credit woes that would hurt the country's demand for imports.

"We will safeguard the state budget as the country's economic anchor to anticipate this situation," Boediono said.

The rupiah fell to Rp 9,475 against the U.S. dollar from Rp 9,460 the previous day. Meanwhile, the Jakarta Composite Index fell the most in five years by 7.7 percent to close at 2,294.52, following falls in other markets in the world.

Other Asian countries' stock markets also suffered a decline. The stock index in Hong Kong dropped 8.7 percent, South Korea 4.4 percent, Shanghai 7 percent, Tokyo 5.7 percent and India 6.12 percent, after it was shut down temporarily. (adt/**)