CORE Economist Forecasts Indonesia's Economy to Recover in 2021
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18 November 2020 23:20 WIB
TEMPO.CO, Jakarta - Economist and founder of the Center of Reform on Economics (CORE) Hendri Saparini said on Wednesday, November 18, 2020, that Indonesia's economy has a better chance to recover in 2021 compared to other countries due to stronger economic structure.
"Every country in the world is facing third-quarter improvements. This is a sign of hope mainly due to positive indicators, even though it's extremely early, but this provides hope for a sustainable recovery," said Hendri during the 2021 CORE Economic Outlook event, which was held virtually in Jakarta on November 18, 2020.
Hendri argued that there are two main indicators that the economy can improve. The first indicator is that Indonesia's economy continues to be dominated with domestic consumption, which reaches up to 58 percent of the country's economy ratio.
The second indicator, according to Hendri, can be noted in the country's international trade that is comparatively low to the gross domestic product (GDP). "These two factors allow us to recover better in 2021," he said.
The CORE economist also urged for a reformation and transformation in economic stimulus, which currently focused on fiscal stimulus.
"Fiscal stimulus has limited potential while non-fiscal stimulus provide more room for the government to create policies to boost the domestic economic sector," Hendri explained.
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