Let Alone 8 Percent, 7 Percent Economic Growth Is Difficult To Achieve If COVID-19 Is Still Crazy

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA - The increase in daily cases of COVID-19 that continues to occur after the momentum of Ramadan this year is believed to hamper the economic recovery process. If this condition continues, the growth target of 8 percent in the second quarter of 2021 will most likely miss.

This was revealed by the Economic Observer of the Center of Reform on Economics (CORE) Indonesia Yusuf Rendy Manilet to VOI. According to him, an increase in cases means opening up opportunities for the implementation of social restrictions.

If this happens, he said, it will certainly hinder people's mobility in daily productive activities.

“Of course, in the current conditions, people will think twice about traveling. With limited community activities, economic activity will also be much reduced,” he said on Wednesday, June 23.

Yusuf added that in general, the growth rate in the second trimester of this year will remain on a positive track. The reason is, the comparison used is the situation in the second quarter of 2020 which has just been affected by the pandemic.

"This social restriction makes the projected growth in the range of 8 or 7 percent less likely to occur," he said.

In previous reports, the government through the Coordinating Minister for the Economy Airlangga Hartarto believes that economic growth in the second quarter of this year can sit at the level of 8 percent on an annual basis.

The government believes that this second quarter we can afford 7 to 8 percent," he said at a virtual press conference, Monday, June 7.

The tone of optimism was conveyed by Airlangga based on the Indonesian Purchasing Manager Index (PMI) manufacturing industry purchases index (PMI) which reached 55.3 in May 2021 or the highest in history.

"We also see that the growth in national spending as of the end of April has also increased by 60.43 percent," he said.