The threat of an economic recession in Indonesia is not without its foundational reasons. Amid the threat of recession, deflation was also recorded in July.
We are in an extraordinary situation during the Covid-19 pandemic; therefore, the policy and measures must also be extraordinary.
The government has promised to boost programs to strengthen consumption, including the preemployment card program. However, industrial sectors that support the economy also need to be leveraged.
Indonesia needs to implement an inclusive and sustainable economic recovery program not only to avoid a recession.
Indonesia's economy is projected to experience negative growth in the second quarter 2020. The bureaucratic procedure, distribution and data collection should be immediately improved to help boost government pending.
Economic recovery in the second semester of 2020 depends highly on whether Indonesia can avoid a second wave of Covid-19 infections, so the estimates of economic growth vary greatly.
The upgrade of Indonesia's status to that of an upper-middle income country is not enough. More reforms are needed to spur economic growth and reduce inequality.
The World Bank estimate on the country’s policy on fiscal tightening deserves attention. Public spending should be more efficient and effective.
The emergence of COVID-19 and social restrictions have led to a decrease in the supply and demand side of goods and services.