Bamsoet: Descriptions Of A Recession Don't Need To Be Dramatized

JAKARTA - The Chairman of the Indonesian People's Consultative Assembly Bambang Soesatyo (Bamsoet) stated that when efforts to recover the economy have to go awry because the number of COVID-19 cases in the country continues to increase, it is sufficient to inform what it is about the recession and supported by the latest data.

"The COVID-19 pandemic has made the lives of all communities uncomfortable, so the description of the recession does not need to be dramatized or made terror to the community," said Bamsoet as quoted by Antara, Friday, August 21.

According to him, an economic recession as a result of the global COVID-19 pandemic is predictable. Since the World Health Organization (WHO) declared the corona virus to be a global pandemic, many ordinary people have been able to calculate the consequences, especially on the economic sector.

Since the beginning of the pandemic, estimates and calculations of recession have been raised by both the government's economic team and by the World Bank, International Monetary Fund (IMF), and the Organization for Economic Cooperation and Development (OECD).

"Due to the fact about interdependence in the economic sector, all countries accept and feel the excesses of the pandemic. The weak performance of the global economy has dragged dozens of countries into a recession zone. Economic performance is weakening due to the spinning of the economic engine deliberately and must be temporarily stopped within the framework of the lockdown. "said Bamsoet.

The lockdown must be carried out as a way to control transmission of COVID-19. Of course the results can be calculated. Since early August 2020, dozens of countries have technically reported recession.

"As is being felt together, the national economy has not escaped the excesses of the COVID-19 pandemic. After being able to record positive growth in the first quarter of 2020, the national economy contracted or grew negatively in the second quarter of this year. This prediction has also been presented for a month or two. then, "said Bamsoet.

The Indonesian economy grew negatively as a consequence of the implementation of Large-Scale Social Restrictions (PSBB). When the PSBB was implemented, the factory was not producing. Work and study is enough from home. Household consumption also decreased because many families held back or delayed shopping.

"The PSBB needs to be implemented to control or break the chain of transmission of COVID-19. Referring to the data and areas of transmission of COVID-19, Indonesia is forced to implement PSBB precisely in growth centers such as Jakarta and all major cities on the island of Java. The impact is quite easy. to be calculated, "he explained.

He said that the choice of PSBB or lockdown was practically unavoidable because the health or safety aspects of everyone were priorities that could not be negotiated.

If only in the second quarter of 2020 there was a contraction, the Indonesian economy could not be said to be a technical recession. The assumption about a technical recession is fulfilled if there are contraction for two consecutive quarters.

"Therefore, anyone should not impose his or her personal or group views, assumptions or judgments that the Indonesian economy has entered the brink of recession. Moreover, if it is assumed there will be an economic crisis," he explained.

Furthermore, he said, it would be unethical for such views or assumptions to be crammed into the public space on an ongoing basis to influence or frighten the public. In a situation of uncertainty like now, according to Bamsoet, inter-communities should strengthen each other and build hope by implementing health protocols.