Jakarta, TheindonesiaPost – The coronavirus pandemic (COVID-19), which has not yet shown signs of ending, has severely hit the world economy, including Indonesia.
In the first quarter of 2020, Indonesia’s economy had fallen to 2.9% from the usual above 5%.
The toughest scenario of the Indonesian economy this year is minus 0.4% growth. The hardest scenario is because of the length of the pandemic so that economic activity becomes abnormal.
“We see the economy in the second quarter and possibly in the third quarter. So the possibility of entering a very severe scenario might occur from 2.3% to minus 0.4%,” Sri Mulyani was quoted as saying on CNBCIndonesia.com
The former Director of the World Bank said that the policy of large-scale Social Restrictions (PSBB) that was widespread, made the economy depressed, people’s consumption fell because they had to be at home.
The economic downturn is feared to be correlated with an increase in poverty. Sri Mulyani’s prediction, the percentage of poverty numbers in Indonesia will return above 10%, the same as the era of President Susilo Bambang Yudhoyono (SBY) in 2011.
“The number of poverty numbers will rise, COVID-March 19-May surges in poverty rates back to 2011. All the achievements in reducing poverty from 2011 to 2020 are back,” Sri Mulyani said.
Previously the IMF had predicted that the Indonesian economy would likely grow by 0.5%, from 5.0% in 2019. But growth was projected to improve in 2021, with an estimated 8.2%. (BBS)
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