Confidence Airlangga Hartarto: Indonesian Economy End Of December Can Be Positive 0.6 Percent

Coordinating Minister for Economic Affairs, Airlangga Hartarto. (Photo: Coordinating Ministry for Economic Affairs)

JAKARTA - The Coordinating Minister for Economic Affairs Airlangga Hartarto estimates that the Indonesian economy has the potential to be positive 0.6 percent (year on year / yoy) by the end of December 2020.

"At the end of December, the year on year is estimated to be minus 1.7 to positive 0.6 percent," said Airlangga in a discussion at Graha BNPB, East Jakarta, Tuesday, October 27.

Airlangga said that the previous economic conditions in the second quarter due to the COVID-19 pandemic were above minus 5 percent. This condition is the deepest contraction.

"The bottom of the second quarter was there," he said.

However, he said, the economic contraction gradually recovered in the third quarter and the results would soon be known. He estimates that conditions in the third quarter will be at minus 3 to minus 1.

This, he said, was boosted by the economic stimulus provided by the government. Some of these programs include social assistance in the form of basic necessities and direct cash assistance (BLT), pre-employment cards, the Family Hope Program, and salary subsidies for workers of IDR 600 thousand per month for four months.

"The government believes that the program which is driven by the government is indeed needed by the community, so that the goal of social protection and supporting purchasing power is positively accepted," he said.

In fact, Airlangga estimates that in the next year, economic growth in Indonesia will increase. He estimates that it can reach a positive 4.5 to 5.5 percent.