JAKARTA - Indonesia officially entered into a recession in the third quarter of 2020, after in the second quarter the national economy also contracted, aka negative. Even so, CORE Research Director Piter Abdullah asked President Joko Widodo (Jokowi) not to worry about the recession and stay focused on dealing with the main problem, namely the COVID-19 pandemic.
Piter explained that the economy was greatly affected by the pandemic. As long as the pandemic continues, it is impossible for economic growth to return to normal levels.
"Referring to China's experience, the government should focus on tackling the pandemic, increasing public discipline, implementing health protocols and accelerating vaccine procurement. When the pandemic subsides, the economy will revive," he said, when contacted by VOI, Thursday evening, November 6.
Furthermore, Piter predicts that Indonesia's economic growth until the end of 2020 will still be in the negative zone in the range of minus 2 to minus 3 percent.
"In the fourth quarter, the economy is expected to improve. Although it will still be in negative territory. This is due to the increasingly loose PSBB and government assistance," he said.
Piter also said that during the pandemic household consumption, investment and exports will certainly decline significantly compared to last year.
Furthermore, he said, so far the PSBB easing and government assistance had only helped to curb the decline in consumption, but it was still not enough.
For your information, the Central Statistics Agency (BPS) noted that Indonesia's economy in the third quarter of 2020 was minus 3.49 percent. This means that Indonesia has entered a recession into the abyss of an economic recession, because for two consecutive quarters of negative economic growth. The contraction in the third quarter was deeper than Jokowi's estimate.
However, on a monthly basis, the economy grew positively by 5.05 percent and cumulatively contracted 2.03 percent.
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