Monoarfa noted that economic growth is not estimated to meet the government’s target of 2.3 percent owing to the likelihood of significant contraction in the second quarter of 2020.
"I forecast it to fall below 2.3 percent, but due to potential contraction in the second quarter of 2020, from April to June, I believe it will go below 2.3 percent. It can even touch one percent," he remarked during a virtual central development coordination meeting held in Jakarta on Tuesday.
Despite the projections, he expressed belief that Indonesia's economy can potentially improve in July based on the measures adopted to facilitate economic recovery.
"In July 2020, it may get better based on how our economy is being restored," he remarked.
Meanwhile, with the projected economic growth far from the target set by the central government, the minister stated that the country's income would be eroded and the number of unemployed is expected to rise by 4.22 million people, as compared to that in 2019.
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"Our estimate is that employment will open for 2.3 million to 2.8 million in 2021, going against the number of unemployed that will increase by 4.22 million in 2020 as compared to that in 2019," he expounded.
Furthermore, Monoarfa noted the number of people living in poverty in Indonesia was also estimated to rise, although the government had set a target to reduce the poverty rate to nine percent or even 8.5 percent.
"By 2020, we are optimistic of reducing it to nine percent or even 8.5 percent, though there might be an increase. Hopefully, it would not return to a double-digit figure," he remarked.
Speaking in the context of past experiences, the minister expressed optimism that local governments would be more candid in reporting the number of poor in their areas .
Monoarfa was also upbeat about sound coordination between the central and local governments in tackling various issues, particularly pertaining to those living in poverty.
"The accuracy and completeness of data and then updating it in a certain way is important. We must together strive to eradicate poverty and target realizing a near-zero figure by 2024," he emphasized. Related news: Economic growth reliant on policy to extend PSBB: Finance Minister
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