Covid is Wild, Indonesia's Economy is in Threat

The increasing incidence of the COVID-19 pandemic in Indonesia has prompted the government to impose restrictions on emergency community activities (PPKM) which will have an impact on economic recovery. According to the material presented by the Minister of Finance Sri Mulyani Indrawati and Banggar DPR RI, it is seen that the prediction of economic growth in 2021 will only grow by 3.7% to 4.5%. This forecast is lower than the government's target of 4.5-5.3% before the emergency PPKM.



"The whole year is projected to be 3.7%-4.5% after adjusting for the dynamics of the spike in COVID-19 cases since mid-June," Sri Mulyani said.


One of the things that slow down is consumption so that economic growth in the third quarter of 2021 is estimated to only grow 4% to 5.4%, while the rate of economic growth in the fourth quarter of 2021 is 4.6% to 5.9%.

"With a temporary BI assessment, with one month of Emergency PPKM implementation, economic growth is estimated at 3.8 percent," said BI Governor Perry Warjiyo.


Whereas previously BI estimated economic growth in the range of 4.1-5.1% with a midpoint of 4.6%. This projection is still uncertain and is subject to change at any time. Especially if the emergency PPKM has not been able to reduce the spread of COVID-19 cases and continues to be extended.


"We continue to monitor developments in mobility, consumption, and overall economic growth," he explained.


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