President Jokowi warns of a possible global economic recession

President Jokowi warns of a possible global economic recession

President Joko Widodo (Jokowi) led a virtual limited meeting from the Merdeka Palace, Jakarta, recently. ANTARA/HO-Public Relations of the Presidential Secretariat/pri/sh

We should not be pessimistic. We have to make efforts, work hard in this recovery, both in terms of public health and the economy. Insya Allah (God Willing), we can do it
Jakarta (ANTARA) - President Joko Widodo (Jokowi) has appealed to ministers and regional leaders to formulate measures to stave off the negative impact of the COVID-19 pandemic on the national economy, including a possible global economic recession.

"Various international institutions, including the IMF (the International Monetary Fund), the World Bank, and other organizations have forecast that the global economy in 2020 would enter a period of recession. According to the latest calculation I have received, economic growth can be negative," the president stated as he led the virtual plenary cabinet session from the Bogor Presidential Palace in Bogor, West Java, on Tuesday.

Jokowi believes that the global economic growth may contract to -2.8 percent in 2020 owing to the COVID-19 pandemic.

"Hence, we have to prepare ourselves with some scenarios," he emphasized.

The head of state pointed to a potential slowdown in Indonesia’s economic growth. "We have to say as it is. The development and economic growth target in 2020 will be corrected sharply," he stated.

Jokowi has appealed to the people to remain optimistic of a fast economic recovery once the coronavirus pandemic can be overcome.

"We should not be pessimistic. We have to make efforts, work hard in this recovery, both in terms of public health and the economy. Insya Allah (God Willing), we can do it," he stated.

In Indonesia’s 2020 state budget, the government has targeted domestic economic growth to reach 5.3 percent.

Finance Minister Sri Mulyani has earlier highlighted a challenging scenario of domestic economic growth of 2.3 percent in 2020 as an impact of the COVID-19 pandemic.

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