TEMPO.CO, Jakarta - The Palace asserted that Indonesia’s economy has not yet fallen into recession albeit its economic growth experienced contraction with minus 5.32 percent growth in the second quarter. The Presidential Special Staffer for Economic Affairs, Arif Budimanta, backed the statement.
“If a country experiences negative growth for two consecutive quarters calculated quarter on quarter (qoq) rather than year-on-year (yoy), it cannot be said to have entered a recession,” said Arif to reporters on Monday, August 10.
Arif was optimistic that Indonesia could still stave off recession if it records positive economic development in the third quarter. “In the first quarter, we positively grow to 2.97 percent (yoy), and in the third quarter, we have chances to reach positive growth following the reopening of economic activities under new protocols,” said the PDIP politician.
According to Arif, Indonesia was not alone in experiencing contraction. Several countries even experienced deeper contractions, such as the European Union (-14.4 percent), Singapore (-12.6 percent), the United States (-9.5 percent), and Malaysia (-8.4 percent).
“This means, our condition is relatively better than those countries because since the onset [of the COVID-19 pandemic], the President instructed to carry out counter-cyclical programs and facilities to boost the domestic economy, especially public consumption,” Arif explained.