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Jakarta, CNBC Indonesia – On paper, the state of a recession is the numbers. Finance Minister Sri Mulyani calculated that Indonesia’s economy would be in the range of minus 2.9 percent to minus 1 percent in the third quarter of 2020, also known as a recession. Indonesia’s economy contracted for two consecutive quarters after contracting 5.32% in the second quarter of 2020.
For entrepreneurs, the state of recession is not a deep concern. However, it is precisely what entrepreneurs fear is the Covid-19 pandemic, of which there is no certainty when it will end.
“For entrepreneurs, there is definitely a concern about a recession, but it is not like in 2008 and 1998, if in the past, the economic fundamentals fell like banking, if now it is strong,” said the president of DPD HIPPI DKI Jakarta / Member of the National Tripartite LKS / Vice Chairman of the Advisory Council of DKI Jakarta Chamber of Commerce and Industry. Jakarta Sarman Simanjorang, a CNBC Indonesia, Wednesday (23/9).
He said that if in the third quarter of 2020, when it was announced later, the Indonesian economy would be negative, then in reality the recession process was underway. Sarman emphasized that what entrepreneurs fear most is not about a recession or not, but whether there is any certainty about when this pandemic will end.
“For entrepreneurs, even if we go into recession, they are not too worried, as long as the country immediately controls the spread of the corona virus,” he said.
According to him, if there is no certainty, then the economic and health problems will continue, making the business world worse. The key is that when the health problem is resolved, the economy will automatically recover, although it takes time. Sarman seemed to be emphasizing that Indonesia’s economic conditions should not enter a more serious or depressing phase until the crisis persists.
“If it is prolonged, the entrepreneur is not in a situation of fear, but of problem Cash Flow respectively, and we need guarantees or guarantees that our vaccines already exist. Therefore, it does not increase layoffs or workers, “he said.
Today, the corporate world needs a psychological injection of certainty about when this pandemic will end. Although he admits that there are currently signs in that direction for sure about the corona vaccine in December 2020 that the government is working on.
“Now there is a breath of fresh air, it remains to be realized that there is a psychological effect,” he said.
On the consequences of a recession on the country’s economy, you can click here.
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