TEMPO.CO, Jakarta -Finance Minister Sri Mulyani on Wednesday admitted that the economic growth had contracted due to the widespread activities affected by the COVID-19 pandemic. She noted that the government is attempting to improve the situation by producing a fiscal stimulus that would hopefully see growth over zero percent.
“Through the stimulus, we will maintain the economic growth over zero percent and close to one percent,” said Sri Mulyani on the virtual press conference, June 3.
The social restriction (PSBB) introduced early on the pandemic had an economically-crippling effect through the second quarter. She noted that an Rp677.2 trillion stimulus is hoped to be able to bring Indonesia’s economic growth into a positive zone.
“The second quarter will see a drop due to the PSBB, but with the stimulus issued for the third and fourth quarter, we hope the economy will be able to enter the positive zone,” said the Finance Minister.
Previously reported by Antara, World Bank senior economist Ralph Van Doom predicted that Indonesia’s economy will slow down to the level of zero percent in 2020 due to the COVID-19 global pandemic. The Central Statistics Agency (BPS) recorded Indonesia’s economy in the first-quarter only grew 2.97 percent, a significant drop to the initial prediction of four percent.