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Bisnis.com, JAKARTA – Finance Minister Sri Mulyani Indrawati stated that Indonesia’s challenge to achieve near zero percent economic growth is to increase consumption, investment and exports.
“The challenge is that if you want to be close to zero percent, then consumption, investment and exports must increase very high,” he said after working together with DPR RI Banggar in Jakarta on Monday (7/9/2020 ).
Sri Mulyani said that the economy in the first quarter of this year contracted 5.32 percent due to a decrease in consumption that reached 5.8 percent and investment approached 8 percent.
According to him, it was observed that the economic indicators improved in July and August compared to April, May and June.
“We expect that in the third quarter of July, August and September the economic growth indicators will be better than in the second quarter,” he said.
He said the potential for a recession could occur in the third quarter of 2020 if public activities had not returned to normal, although public spending could accelerate and investment had entered the positive zone.
“If technically in the third quarter we are in the negative zone, then a recession will occur,” he said.
However, he explained that there is also great hope for a recession in the third quarter, because in the last month there has been a fairly good evolution.
“Accelerated public spending and economic recovery programs will continue to be implemented and encouraged so that consumption and investment gradually recover,” he said.
In addition, he assured that the government will accelerate public spending to continue recovering consumption and investment so that the third quarter also has better possibilities than the second.
“The government hopes performance the third quarter improves and remains until the fourth quarter, “he said.
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