'New Normal' Predicted to Present Minimum Economic Significance

TEMPO.CO, Jakarta - Finance Minister Sri Mulyani on Tuesday announced that it is preparing further economic details regarding the new normal scenario, mainly fiscally. Her statement yesterday marks the start of the government’s attempt on national economic recovery. 

“Throughout the COVID-19 pandemic, a cure or vaccine has yet been discovered, which is why we must be able to counterbalance it by maintaining good health while also creating room for social and economic interactions,” said Sri Mulyani on Tuesday, June 2.

Meanwhile, Bank Indonesia Governor Perry Warjiyo said that the central bank is aiming its attention on the consumption drop which has affected the country’s inflation rate. May’s monthly inflation was recorded at 0.07 percent and 2.19 percent year-on-year that is predicted to continue. 

He also noted that inflation on food prices must be closely monitored as the global food supply chain is believed to be deeply hampered by COVID-19. 

“However, domestic goods prices will remain under control and also see its supply maintained,” said the governor, who is eyeing on 2-4 percent inflation this year. 

The inflation level and the weakening public consumption will have strong implications on the 2020 economic growth, which Bank Permata chief economist Josua Pardede said will see slow growth and potentially contract to -2 up to -3 percent. 

Despite the government announcement to implement a new normal scenario, Joshua believes that it will not pose any significance towards the national economy as he said “public consumption is yet to significantly recover.”

GHOIDA RAHMAH