Multilateral institutions International Monetary Funds (IMF), World Bank, and Organization for Economic Cooperation and Development (OECD), on the other hand, have predicted the economy will grow back next year.
“The IMF predicts the world economy will grow by 5.4 percent, which is a high estimation in my opinion," President Jokowi said during a meeting on the 2021 state budget with some of his ministers in Bogor Palace July 28. "The World Bank estimates the economy will grow by 4.2 percent, while OECD predicts between 2.8 and 5.2 percent.”
The president said that he is optimistic the Indonesia will exceed the outlook of the international financial institutions because the country’s economy is not as bad as other countries'.
“I am of the view that if the estimation is correct, then the economy of Indonesia would grow above world economic growth. Indonesia has been ranked in the second-fastest group of economies to recover after China,” he said, adding that it is good news to be thankful for.
However, he has reminded his ministers to stay vigilant for the second wave of coronavirus.
“We must remain vigilant about the possibility of the second wave and the continued uncertainty of the world economy in 2021,” he said.
Previously, it was reported that Indonesia has taken some measures to avoid a recession by allocating a stimulus package under the national economic recovery program.
For the program, the government has allocated 607.5 trillion rupiahs ($42 billion). Of this, 203.9 trillion rupiahs ($14 billion) is to improve safety net programs, 120.6 trillion rupiahs ($8.3 billion) will be used for business incentives, 123.46 trillion rupiahs ($8.5 billion) in incentives for micro, small, medium enterprises, and 53.57 trillion rupiahs ($3.6 billion) in corporations. The government has also allotted 106.11 trillion rupiahs ($7.3 billion) for sectors and local administrations.
As of today, the number of Covid-19 cases in the country has reached over 102,000 with 4,901 deaths. More than 60,000 have recovered.
(Writer: Ihsanuddin | Editor: Bayu Galih)