Jokowi Believes Indonesia Economy Has Passed the Lowest Point

TEMPO.CO, Jakarta - President Joko "Jokowi" Widodo believed that Indonesia has passed its lowest point of economic growth in the second quarter of 2020, and so it is now advancing to the economic recovery phase.

He outlined that several indicators of domestic macroeconomics showed positive growth, such as the increase in the import rate of raw materials and capital goods to support the performance of the processing industry.

Besides, the Indonesian trade balance recorded a surplus of US$8 billion in the third quarter, which was believed to support the economic resilience to external shocks.

Speaking at the 2020 Bank Indonesia Annual Meeting (PTBI) in Jakarta, December 3, President Joko Widodo said the state's economy was contracted in quarters two and three, by 5.32 percent and 3.49 percent, respectively.

"This means that it has passed its lowest point, it's the turning point to the positive trend,” Jokowi said. 

In the financial market, he also believed that investor’s trust will keep improving, which can be seen from the improvement in the Jakarta Composite Index (JCI) performance and the rupiah exchange rate in recent weeks.

The positive economic momentum, Jokowi underlined, must be maintained while prioritizing public health amid the COVID-19 pandemic. “We must remain vigilant, not careless, and be disciplined in implementing the health protocol to avoid the second wave which will put our efforts and sacrifices to waste,” he remarked.

Read: Q3 Economic Growth Rate at Minus 3.49%; Economist: Worse than Market Consensus

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