Jakarta, CNBC Indonesia – The Indonesian economy is said to be threatened not only in the brink of recession but also in depression. Especially if the Covid-19 pandemic in Indonesia is not resolved quickly.
INDEF economic observer Tauhid Ahmad said the economic contraction in the second quarter of 2020 was too deep so that recovery would take a long time. Therefore, the third and fourth quarters of the economy are predicted to return to minus. If this condition occurs, Indonesia will not only face recession but economic depression.
“If, for example, in the next three quarters it is still negative, in the fourth quarter the negative is actually we are headed for depression, this is what we are worried about.
Known, depression in this case refers to the economic recession that lasted a long time and can not be overcome, so that the economic crisis leads to depression. Usually this depression lasts between 18-43 months. In other words, economic depression is a far worse condition than recession.
According to him, the handling of a pandemic by the government is still slow so that it has not had an impact on the economy, let alone the health sector. This can be seen from the realization of the new Health handling of Rp 6.3 trillion or reaching 7.19% of the budget set at Rp 87.55 trillion.
“So how can we convince ourselves, when the higher the pandemic, the realization of the budget is hampered far more than other programs,” he explained.
(dru)
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