TEMPO.CO, Jakarta - The Indonesian Employers Association (Apindo) argues that an economic recession is unavoidable at this point as the economic growth in the first quarter of 2020 had underperformed compared to the fourth quarter of 2019.

Indonesia’s economic growth in the second quarter of 2020 experienced a 5.32 percent contraction. “This year’s third quarter also scored negatively. But this must be maintained. We are pushing to avert from an economic recession,” said Apindo’s head of public policy Sutrisno Iwantono in Wednesday’s virtual discussion.

Sutrisno said a recession might not be a significant hurdle for the country as most countries across the globe are experiencing the same situation, however, he asserts that an economic recession must be avoided.

“An economic crisis will extremely drain the economy. This is what needs to be assisted in its short term,” he said.

He says the closest the industry - from major to micro-businesses - could do to help extend the government’s “breath” is mainly by improving people’s purchasing power as the economy will not run without it.

Apindo views that the current government stimulus is still too insignificant, which constitutes 5 percent of the GDP when other countries are allocating up to 20 percent.

“Despite this, I am optimistic that there will be improvements by the end of this year,” he said.

Read also: Apindo Bids on Domestic Investors as 'Saviors' amid the Pandemic

BISNIS