Indonesia Officially Falls Into Recession

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Sumber: tribunnews.com

LiputanIslam.com— Statistics Indonesia (BPS) recorded Indonesia’s economic growth in the third quarter of 2020 reached -3.49 percent. Thus, Indonesia has officially experienced a recession because its economic growth has contracted twice.

Head of BPS Suhariyanto said that economic growth in the third quarter of 2020 is quite the opposite compared to the same period last year of 5.02 percent.

“With this position, if we compare the position in the third quarter of 2019, Indonesia’s annual growth position is still contracting by 3.49 percent,” he said on Thursday (5/11).

Read: Economic Crisis During the Pandemic, Sri Mulyani: We Can Survive

He explained that the economy in several countries actually improved in the third quarter of 2020 compared to the previous quarter. However, the economic recovery was suppressed by an increase in corona cases.

“In several countries in Europe, Germany, France, Britain, and Austria are under lockdown again because of the increasing COVID cases,” he explained.

Presidential Executive Staff Arif Budimanta revealed that the government would continue to strive to improve the economy by channeling the government budget. He admitted that he was optimistic that the economic recovery would go well.

“In the fourth quarter, the remaining budget will continue to be distributed to stimulate the economy. We are optimistic that the economic recovery will be on the right track, “he said.

Until now, the government has distributed state financial allocations amounting to Rp 1.840.9 trillion or 67.2 percent of total state expenditure. This number does not include the realization of Covid-19 handling absorption.

According to him, the funds channeled by the government have helped to cover the weakness in the consumption and investment sectors that fell due to the pandemic.

“President Jokowi’s continuous direction for the ministers to streamline the budget has been proven to be able to restore the economy,” he said. (sh/cnnindonesia/cnbcindonesia)

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