Jakarta, CNBC Indonesia – Chairman of the People’s Consultative Assembly (MPR) of the Republic of Indonesia Bambang Soesatyo highlighted the impact of the Covid-19 pandemic which has an impact on concerns that Indonesia will experience a recession as experienced by a number of other countries whose economies have contracted.
Therefore, the government and all parties are expected to be mutual cooperation continues to support government policies that have taken concrete steps to encourage economic improvement.
“If it is not resolved immediately, the domino effect of the recession will spread to various sectors, ranging from non-performing bank credit to a spike in inflation that is difficult to control or otherwise sharp deflation because the economy is not moving,” he said at the MPR RI annual session in the MPR RI meeting room, Jakarta. , Friday (14/8/2020).
This Golkar Party official also highlighted the impact on the Indonesian capital market.
“Then, the trade balance will be minus and have a direct impact on foreign exchange reserves. On a real scale, the impact of a recession on a country is an increase in unemployment, a drop in income, an increase in poverty, a decline in asset prices such as the stock or property market,” he said.
“It also has an impact on widening inequality, high government debt along with falling tax revenues, permanently lost production, and bankruptcy,” said the man who is usually called Bamsoet.
Therefore, he said, it is important for all parties to work together to support government policies in encouraging economic improvement, including the financial sector and the real sector. In the real sector, such as providing easy capital for business actors, both small and large; encouraging the government to curb the rate of economic decline by increasing the distribution of social assistance and stimulus to the business world.
In addition, encouraging the government to carry out economic recovery and prevent recessions, in particular restructuring labor-intensive loans, guaranteeing working capital, and regional government spending, but still accompanied by considerations from the aspect of public health.
“Encourage the government to prepare a number of steps and strategies to prevent a domino effect from Covid-19; and urge the public to remain patient in facing the Covid-19 Pandemic and remain optimistic that things will improve,” he said.
In trading on Friday morning (14/8/2020), at 10.16 WIB, the Composite Stock Price Index (JCI) was still up 0.08% at the level of 5,243 with a transaction value of IDR 2.89 trillion. Today, foreign investors entered the negotiable market and cashed at Rp. 544 billion.
In the past week, the JCI’s performance was still up 1.93% and in the last month it rose 2.84%.
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