Economic recession mitigation amid pandemic
Jakarta – As with the global economic conditions, Indonesia is also in the shadows The worst possible national economic situation. Current pandemic phenomena Ongoing projection led to several international agencies and Speculates on the growth of the world economy, Indonesia is no exception. On Monday (27/4) Central Board of MES re-organizes Sharia Online Talk Series to 4 with the theme "It could be an economic recession impacts Covid-19 ". The event aims to provide an overview of economic situation and Mitigation against future projections.
Management The center of MES, Abra Talattov explains the Indonesian economy has potential The recession was in 2020 due to the Covid-19 impact. "Indonesia is potentially experiencing recession Economic growth due to the world's economic development in succession. Some international institutions have cut the projection of economic growth From positive to negative. The IMF has cut global economic growth This year to-3% which previously grew 3%. And this is what encourages Indonesia's economy has a great potential for recession. " Clear Abra
Although Recession occurs, does not close the possibility of Indonesia's economy will grow positively In the future after the pandemic ends. "Interestingly despite our economy Predicted by some international institutions will be negative in this year but Reborn predictions for the next year is enormous. The IMF itself argues That the Indonesian economy could experience growth of 5.8%. If indeed Governments and business worlds can mitigate this crisis closely. " Further Abra.
Guy Who is also an INDEF junior researcher, said that the economic sector Especially in the real sector. "This covid will affect Sectors including Sharia economics, especially in the real sector, because of the The first of all affected by the Islamic tourism and economic sectors Of course also consist of rill sector such as SMES, so we must be creative Through the online trading platform and the wide range of devices available to endure. " He said
Abra Also explained that the cause of the economic recession in this pandemic era was triggered of supply and demand conditions. "This year's economic recession is interesting compared Before, judging from the two sides, supply and demaind shock. Demand was reduced due to Mobility is obstructed so that all community activities are restricted and The supply also experiences shock because the industry is experiencing production activities Abnormal due to barriers in industrial raw materials requiring Availability of imported materials. So the supply chain production was interrupted. " He said
Besides From the real sector, the potential recession that is faced by Indonesia as well as the capital Flow (foreign capital flows). "Because of panic around the world Investors tend to secure their assets to the tax haven (low taxes) such as buying gold and hunting for dollars by purchasing a letter From a country that is still considered safe. Capital out of flow In Indonesia both from the capital market and the forex market is very high, even Cause the rupiah exchange rate had to drop 18% so from the real sector and capital Out of the flow that led to the potential economic recession. " He added
While , the impact that is directly perceived by such conditions is The unemployment rate in Indonesia. Abra Express in time A month the number of unemployment ranged from 1.9 million workers. "The worst impact of a live recession is a rise in unemployment, as of 16 April there is already around 1.9 Million workers both the formal and informal sectors are already in the house and in LAYOFFS. Although the Garry lasts 1 month and the government project the amount Unemployment will increase by 5 million people if the condition deteriorates. " Clear Abra
As Efforts to suppress the growing unemployment rate of the government has issued Stimulus packages, both relaxation credits and job creation with Allocation of funds from the Ministry of Manpower. "From the formal sector in Hotel tourism, the government has begun to cooperate with private hotels to Make the function of the hotel as a supporter handling Covid, through OJK Also has provided a relaxation credit stimulus to delay credit payments For a year for the company's impact and in the field of creation Employment, allocating from several budgets of the Ministry of Labour Create projects that can absorb manpower and through the instruments of village funds To be directed directly in order to provide income for communities in Village. " He concluded