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Jakarta –
Indonesia is getting closer to joining the list of countries experiencing a recession due to COVID-19. The Corona pandemic that has been going on for about six months cannot be managed.
The Corona pandemic has slowed global economic growth, even the affected countries have entered the negative economic zone. Both in the first quarter and in the second quarter.
For Indonesia, Finance Minister Sri Mulyani Indrawati said there is a great possibility of a recession. This is because the Ministry of Finance projects that economic growth will be in the range of minus 2.9 percent to minus 1 percent in the third quarter.
Indonesia is in recession due to realizing second quarter economic growth of minus 5.32%. If the third quarter turns negative again, it will officially be a recession. A recession is a condition in which economic growth is minus two consecutive quarters. If Indonesia is officially a recession, what will happen then?
According to economists, this condition will have an impact on the weakening of purchasing power and even on layoffs.
“The purchasing power will certainly weaken even more,” said the deputy director of the Institute for the Development of the Economy and Finance (INDEF) Eko Listiyanto when contacted. detikcom, Tuesday (9/22/2020).
He also assessed that the impact of this recession would continue the layoffs that occurred since the start of the COVID-19 pandemic. Even employees who are currently laid off and subject to pay cuts may have worse luck.
“Yes, I think the layoffs will continue,” he said.
Contacted separately, Yusuf Rendy Manilet, an economist at the Center for Reform in Economics (CORE), also claimed that purchasing power would weaken.
“Well, as the purchasing power has not yet recovered, it is caused by, for example, people who have not found work, so effectively the assistance provided by the government is not enough to, for example, bring purchasing power to the previous level to the pandemic. weakening purchasing power, “he explained.
He explained that the impact of layoffs in the midst of a recession would increase the number of unemployed.
“Another impact is the potential for a growing number of unemployed because if we look at various BPS surveys, especially in recent days, it has been stated that many sectors have laid off their employees,” Yusuf added.
Previously reported, Finance Minister Sri Mulyani Indrawati confirmed that the national economy would officially enter recession in the third quarter of 2020. This follows a projection reviewed by the Ministry of Finance.
Sri Mulyani said that the Finance Ministry updated Indonesia’s economic projection for 2020 as a whole from minus 1.7% to minus 0.6%.
“Our most recent forecast for September 2020 is minus 1.7% to minus 0.6%. This means negative territory may occur in the third quarter,” Sri Mulyani said in a video conference on the National Budget on Tuesday ( 9/22/2020). .
The realization of national economic growth in the second quarter of 2020 was minus 5.32%. A recession will occur if national economic growth turns negative again in the next quarter. A recession is a condition in which economic growth is minus two consecutive quarters.
Watch video “There is 1 week left for RI to avoid the recession gap, can you?“
[Gambas:Video 20detik](fence / DNA)
