Indonesia Predicted Recession, Luhut: We Feel Comfortable. Page all

JAKARTA, KOMPAS.com – Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, said the government is ready to face recession because it has a strong infrastructure and program preparation.

Reporting from Among, Saturday (15/8/2020), Luhut explained economic growth expected to grow zero percent or positive 0.5 percent and the worst possibility reach negative 0.5 percent.

“Yes, if a recession occurs, it could happen. But we are ready to face it all because of the infrastructure we make, the programs we make, the executions we make, we feel comfortable (still comfortable), “he said.

Luhut explained, the term comfortable is not his personal opinion. However, this arises because there are many international institutions, ranging from the IMF, the World Bank to various international credit rating agencies.

Also read: Luhut: India Lockdown, Its Economy Down!

He said he routinely gave explanations about the economic conditions and handling of Covid-19 to these institutions.

This was also done as an effort to get input on policies undertaken by Indonesia in an effort to restore the economy amid the pandemic.

“They always say our program is a very comprehensive program, maybe some extend the best among emerging market (in some of the best among developing countries). So, actually our execution is the most important. The program has been so well prepared, “he said.

The government is trying to increase Indonesia’s economic growth, from minus 5.32 percent in the second quarter of 2020 to positive. However, of course according to Luhut, hard efforts are needed to make it happen.

Also read: Luhut Admits Indonesia Has Too Many International Airports

“If now (quarter II 2020) we minus 5.32, we work really hard to be zero or 0.5,” he said.

Therefore, the former Menko Polhukam continued, the government is planning a National Economic Recovery (PEN). There are three plans made by the government, namely the state budget, stimulus, and domestic investors.

“But if there were three areas, one APBN, the second stimulus, the third most important is domestic investors,” he said.

Previously, the Coordinating Minister for the Economy Airlangga Hartarto predicted that the Indonesian economy during 2020 would grow by minus 0.49 percent as a result of the Covid-19 pandemic.

Also read: Luhut: I am sad, intellectually only see a piece then give a comment …

In his presentation regarding the economic growth of a number of countries including Indonesia, Airlangga estimated that the Indonesian economy in the third quarter of 2020 would reach minus 1 percent.

Then, the fourth quarter of 2020 is estimated to improve to a positive 1.38 percent, so that economic growth in 2020 is estimated to be negative 0.49 percent.

Meanwhile, the Central Statistics Agency (BPS) reported that Indonesia’s gross domestic product (GDP) in the second quarter of 2020 was minus up to 5.32 percent. On a quarterly basis, the economy contracted 4.19 percent and cumulatively contracted 1.26 percent.

Also read: Luhut said, China was able to reduce poverty and unite its 1.4 billion people thanks to this

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