DPR Reminds Bad Economic Impact Due To COVID-19

Gedung DPR RI. (Irfan Meidianto/VOI)

JAKARTA - The corona virus or COVID-19 was first discovered in Wuhan, China. Currently the virus has spread to other countries, as a result of which world economic growth could decline, and even become the worst since 2009.

Member of Commission XI DPR RI, Kamrussamad said, the decline in economic growth was due to the cessation of supply of raw materials. If raw materials are still difficult to obtain, then an economic crisis cannot be avoided.

As a result of this COVID-19, said Kamrussamad, there was a decrease in the flow of exports and imports, a decrease in purchasing power, lack of foreign tourist visits, a collapse in the flow of loading and unloading goods at ports.

Not only that, immigration at the airport was also affected. The rupiah, he said, weakened, the real sector declined, and stock prices fell.

"If this continues, it will be very clear that the economic recession is starting," he said, through a written provision, in Jakarta, Monday, March 9.

According to Kamrussamad, the London-based consulting firm Capital Economics even estimated that this outbreak would cost up to USD 280 billion, only in the first three months of 2020.

This figure, greater than the annual budget of the European Union, is roughly equivalent to Microsoft or Apple's revenue, and eight times the annual budget.

Kamrussamad said the public needed to be aware of illegal investment offers in the midst of the COVID-19 outbreak. Moreover, most of the companies or parties that make illegal investment offers are not Financial Services Institutions (LJK).

The company or party making this investment offer is not registered and supervised by OJK. Thus, said Kamrussamad, OJK could not confirm the legality aspect of the company.

"It takes educational and literacy efforts to the public to participate in fighting illegal investment offers that are detrimental and unsettling to the community," he said.