Jokowi Challenges Regional Heads To Help Indonesia Avoid Recession Gap

President of the Republic of Indonesia, Joko Widodo. (Photo: Setkab)

JAKARTA - President Joko Widodo (Jokowi) stated that Indonesia will enter into a recession if Indonesia's economy in the period July to September or the third quarter of 2020 returns to a negative. This is because in the second quarter the economy had contracted or minus 5.32 percent.

In economics, a country can be said to be experiencing a recession if its economy is negative for two consecutive quarters. The determinant whether Indonesia will enter or not be in the brink of recession is in the third quarter of this year.

Even though the threat of a recession was in sight, Jokowi said the government still had one month to prevent Indonesia from being included in the list of recession countries amid the COVID-19 pandemic.

"We still have one month in the third quarter of 2020, July, August, September 2020. We still have a chance in September 2020. If it is still in a minus position, it means Indonesia is entering a recession," he said in a video conference, Tuesday, September 1. .

To save Indonesia from the brink of recession, Jokowi urged all regional heads, including governors, regents and mayors to accelerate the absorption of the Regional Revenue and Expenditure Budget (APBD). Particularly related to expenditure for goods, capital expenditure, spending on social assistance (bansos).

"This is really urgent, so that it can increase public consumption and restore the regional economy," he said.

Based on the data he received, Jokowi underlined the absorption of spending in the APBD. This is because the national average is only 44 percent as of August 27. Meanwhile, the absorption of expenditure from the district / city APBD was only 48.8 percent.

"What is the realization of goods and services in Aceh? North Sumatra, what percentage is it? Bengkulu is also looking at only what percentage, West Sumatra is already above 50 percent. I think we really pay attention to these figures," he said.

Still based on the same data, Jokowi said that the absorption of spending was quite high in DKI Jakarta. The details are the realization of goods and services spending by 70 percent and 90 percent for working capital.

"Others are still at 10 to 15 percent, moreover social assistance is still zero percent. These figures are really seen. The realization of the APBD is like this, every day I follow all the provinces, districts / cities, the numbers appear. Please pay attention. , "he said.

On this occasion, Jokowi also highlighted the economic growth of a number of regions that were mostly negative in the second quarter of 2020. Some of these areas were Bali which was minus 10.98 percent, DKI Jakarta was minus 8.22 percent, and Yogyakarta was minus 6.74 percent.

"Bali because tourist tourists really dominate the economy in Bali, so it can be seen that the economic growth has contracted very sharply," he explained.

Meanwhile, said Jokowi, Papua managed to grow positively, namely 4.52 percent. However, West Papua looks almost negative, namely 0.53 percent. "This is what is still positive for Papua and West Papua," he said.

"Once again, I hope that especially the realization of the APBD will soon become the daily concentration of governors to remind regents and mayors who are still in low positions," he said.