Sri Mulyani Set to Bolster Economic Growth in Q3

TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati confirmed that the government was focusing on pursuing the country’s economic growth in the third quarter of 2020. Several measures have been prepared, starting from increasing budget absorption, pumping state funds into banks, up to providing guarantees of working capital loans for businesses.

“We hope that it (the efforts) can become a growth engine so that in the third quarter, we will not face a very deep pressure,” said Sri at the Parliament Complex, Senayan, on Wednesday, July 15, 2020.

In the second quarter of 2020, the former managing director of the World Bank estimated that Indonesia's economic development would be around -5.1 percent to -3.5 percent, with a midpoint projection of -4.3 percent.

Sri explained that the contraction in the second quarter was attributable to a sharp decline in various sectors, such as manufacturing, trade, mining, and transportation.

According to her, the country experienced a very deep economic pressure in April and May in the wake of the COVID-19 pandemic. Meanwhile, the impact of the new normal policy in July remains low.

She added relaxations in the transportation sector had been given, yet its contribution was low since many people have not traveled much yet.

“Thus, we will boost [economic growth] in the third quarter. Several data we have obtained show there will be a turning point. However, we want to accelerate this turning point,” Sri Mulyani said.

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