Airlangga Hartarto: Yesterday Our Economy Had A Little Choke

Coordinating Minister for Economic Affairs, Airlangga Hartarto. (Photo: Twitter @airlangga_hrt)

JAKARTA - The Coordinating Minister for Economic Affairs Airlangga Hartarto said that last week's total large-scale social restrictions (PSBB) had a negative impact on the economy, especially the capital market. However, he said, currently his condition was back to normal.

"This means that this is a trend that can be caught in that the economy is improving. Yesterday there was a slight choke but it was covered again. The capital market has also started to rebound from both developed and developing countries. Indonesia itself has returned to the 5 thousand path," he said, 100 Economists' Virtual Workshop, Tuesday, September 15.

On Friday, September 11, the Composite Stock Price Index (JCI) strengthened 125,251 points (2.56 percent) to 5,016,712. Whereas the previous day JCI experienced a sharp correction of minus 5.01 percent to the level of 4,891.5.

Airlangga said that Indonesia's economic improvement also occurred in the financial market. This can be seen from the rupiah exchange rate of 8.78 percent, higher than the currencies of the Philippines, Malaysia, Singapore, and even Japan.

"We use April 1 because it is the lowest point of COVID-19 in various countries, including Indonesia. The currencies that have the highest appreciation are the Australian dollar and the Indonesian rupiah. The Philippines, Indian rupees, and Japan yen have lower appreciation," he said.

The chairman of the Committee for Handling COVID-19 and PEN said that the easing of lockdown policies in several countries also accelerated the global economic recovery. In some countries, the easing of lockdowns has made economic activity move again.

"Some of the easing of the lockdown has accelerated economic activity," he said.

Since June 2020, manufacturing activity began to move up. This is in line with the recovery in world capital markets. Overall globally, manufacturing activity is already developing.

Airlangga said the manufacturing industry in Indonesia was already at the level of 50.8. Higher than several countries in ASEAN which are still below 50.

"In ASEAN, several countries are still below 50. However, in Indonesia it has entered the level above 50 or 50.8," he said.