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JAKARTA, KOMPAS.com – A number of countries have now entered the abyss recession, as a result of the Covid-19 pandemic.
Meanwhile, Indonesia is currently preparing for this threat if in the third quarter of 2020 economic growth is still at a negative level.
PT Indo Premier Sekuritas Head of Marketing Paramita Sari said the main marker of a recession is the economic downturn with reduced trade and industrial activity.
Also read: Facing Recession, Portfolio Diversification Is a Solution
This condition has the potential to make economic growth negative in two consecutive quarters.
As for the second quarter of 2020, Indonesia’s economic growth was minus 5.32 percent.
“Nevertheless, optimism remains for the Indonesian economy, which can still grow positively until the end of the year, if in the third quarter economic growth remains in the positive zone,” said Paramita to Kompas.com, Thursday (3/9/2020).
Even though the recession is looming, there are several ways you can support the government’s efforts to safeguard the economy going forward.
Also read: Can Indonesia Experience a Recession in 2020?
Here are 4 tips you can do to prepare for the threat of a recession.
Thrifty does not mean being stingy. Saving money in the midst of the Covid-19 pandemic, which is not yet sure when it will end, is very important to face economic conditions that can be even more dragging than today.
Therefore, some non-essential financial posts really need to be postponed first and focus on basic needs.
Fulfilling basic needs independently is also important, for example, you can cook yourself for daily food needs.
“That way, ordering food through an online application must also be reduced little by little so as not to drain money. The key to saving is controlling wants and prioritizing needs, ”explained Paramita.
Nobody knows what the future holds. There are many unforeseen events in the future that no one is able to see and avoid for sure, such as illness, accidents, layoffs, deaths, floods and other events of a sudden nature.
Also read: See, 7 Reasons You Should Have Emergency Fund
Faced with economic uncertainty due to sluggish national economic movements, preparing an emergency fund is very important.
Emergency fund which should be liquid is important to anticipate these unexpected expenses.
“The ideal formula for an emergency fund is the amount of monthly expenses multiplied by the anticipated number of months, which is usually a minimum of 6 months,” he explained.
3. Buying local products and SMEs
One of the steps to support economic growth in times of recession is buying local products and MSMEs.
This sector is very basic because it has touched the lowest level in the economy and will have a direct impact on society.
Also read: Tips for Discipline in Saving Emergency Funds
That way, even though large-scale trade and industrial activity has decreased, there is still movement in the economy at a lower level.
Buying local products and UMKM indirectly supports the sustainability of people’s lives, so it has the potential to grow the national economy.
A true investor is always ready with all the possibilities that will happen. Recession conditions that cause anxiety for investors, but on the other hand can bring great opportunities for investors to gain profits.
One investment that remains attractive in the face of recession is investing in the capital market starting from mutual funds and stocks.
Investment diversification in the capital market can be started with money market mutual funds and fixed income mutual funds with less risk.
As for stocks, it is certainly important for investors to pay more attention to stocks bluechip.
As a reference, investors can look at the IDXQ30 Index that was launched by IDX in early August, where the Index constituents are 30 stocks that have historically been relatively high in profitability, good solvency, and stable profit growth with liquidity in transactions and good financial performance. well.
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