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Jakarta, CNBC Indonesia – Finance Minister Sri Mulyani Indrawati openly stated that the Indonesian economy in Q3 2020 is likely to remain negative. The economy in the third quarter is forecast to be in the range of -2% to 0%.
If the economy in the third quarter is negative, Indonesia will officially enter the brink of recession. This is because the economy in the second quarter of 2020 was also negative at 5.34%.
However, Sri Mulyani emphasized that a recession is not a bad thing. Also, all policy instruments will be executed by the government to keep the economy running.
“Technically in the third quarter we are in a negative zone, then there will be a recession. However, that does not mean that the conditions are very bad,” he said at the DPR RI building on Monday (7/9/2020) .
According to him, the Indonesian economy may still be negative because public consumption and investment have not recovered significantly.
However, he believes that the contraction will not be as deep as the second quarter of 2020. This is because the contraction in the economic impulse sector from June to August was not as deep as that from April to May last.
In addition, the assistance or stimulus provided by the government through the National Economic Recovery program (PEN) will continue to be promoted, so it is expected that consumption and investment can grow again at least in a neutral direction.
“As there was a fairly good increase in the last month, we can expect economic growth in the third quarter to be better than in the second quarter, which has a deep contraction of -5.3%,” he explained.
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