JAKARTA – Indonesia is said to have passed a critical point in the economy due to the impact of the Covid-19 pandemic. The government and Bank Indonesia (BI) are optimistic that Indonesia’s economic growth will begin. to enter the positive zone in the fourth quarter of this year.
In 2021, the domestic economy is estimated to recover and grow again in the range of five percent. They conveyed this belief by President Joko Widodo and BI Governor Perry Warjiyo at the BI Annual Meeting which they held virtually, Thursday (3/12).
Indonesia is technically in a recession zone as economic growth contracted in two consecutive quarters. In the second quarter, the Indonesian economy contracted 5.32 percent.
Although the economy in the third quarter was still minus 3.49 percent, this indicates a recovery process. If the economy in the fourth quarter grows positively, Indonesia will move out of the recession zone.
President Jokowi said that the increasingly visible economic improvements. Were the result of balanced handling of Covid-19 between health and economic aspects. The President emphasized that from the beginning. The government had tried to reduce the risk of Covid-19 transmission coupled. with support for the community to remain productive and survive the crisis.
“The positive signal for the economy is also clear, increasingly clear. Our hard work is starting to show results,” Jokowi said in his remarks.
Mr. President claim for a positive economic signal
Jokowi claims for a positive economic signal was increasingly clear based on a number of parameters. From the performance of economic growth, said Jokowi, there was an improvement. The national economy still recorded a contraction of -3.49 percent in the third quarter of 2020. However, the President emphasized that this figure was better than the achievement in the second quarter of 2020. Which contracted more deeply.
“This means that it has passed its lowest point, a turning point towards improvement. With this momentum, I am sure we will move again in a positive direction in the fourth quarter and beyond,” said Jokowi.
In terms of capital and financial markets, said Jokowi, the performance of the composite stock price index (IHSG). And the rupiah exchange rate continued to show improvement. The basic industry sector experienced the largest stock index recovery since the sharp decline on March 24 or the initial momentum of the Covid-19 pandemic that hit Indonesia.
Although signs of recovery are beginning to appear, Jokowi emphasized that the government will not be complacent and complacent with data and numbers that present improvements. He reminded us that the principle of economic recovery is the handling of Covid-19 in terms of good health. Therefore, Jokowi asked all people to adhere to health protocols. And be vigilant so that there is no second wave of Covid-19 transmission in the country.
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