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Jakarta, CNBC Indonesia – President Joko Widodo (Jokowi) called on the ranks of regional chiefs to accelerate regional spending as support so that Indonesia does not go into recession like other countries.
This was relayed by Jokowi during a briefing during a limited meeting with governors and ministers at the Presidential Palace in Bogor, West Java, on Tuesday (1/9/2020).
“Expenditures on goods, capital expenditures and welfare expenditures are really accelerated so that they can increase public consumption and improve the economy in the regions,” Jokowi said.
Jokowi emphasized that next month will be the last bet on whether or not the Indonesian economy will enter the abyss of recession. Jokowi emphasized that if the domestic economy returns to a negative level, then Indonesia will certainly be included in the list of countries in recession.
“For that, in the third quarter, we still have a month, that is, July, August, September. In September we still have a chance. If we are still in a negative position, it means that we are entering a recession,” he said.
So what worries Jokowi about a possible recession?
On this occasion, Jokowi provided data on the implementation of the Regional Budget (APBD) as of August 27. The absorption of regional spending in that period only reached 44%.
“For APBD spending it is still 44%, and for regency and city spending it reaches 48.8%. Be careful with this. I think we can see this figure, how much realization of spending on goods and services, capital spending, how much social assistance, “he explained. .
Jokowi then mentioned a number of regions whose realization of regional spending was still quite alarming. Although not specifically, the figures sent by the head of state must be carefully examined.
“North Sumatra is just what the percentage is, Bengkulu also looks at exactly what percentage, West Sumatra is already above 50%. I think we can really look at this figure, DKI Jakarta for goods and services is already 70% high, “he explained.
“The others that are still at 10%, 15%, plus social assistance is still 0%. These numbers are really seen. Carrying out APBD so every day I follow all the provinces, districts, cities, the figures are visible “. he said.
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