While delivering a scientific speech to commemorate the Anniversary of the School of Strategic and Global Studies in Jakarta, Friday, the minister highlighted the projection of zero-percent economic growth for Indonesia or to lie in the positive territory of 0.5 percent and in the worst-case scenario reaching negative 0.5 percent.
"Yes, if a recession occurs, it could take place. However, we are ready to face it all owing to the infrastructure we build, the programs we create, the executions we carry out, and we feel comfortable," he affirmed.
Pandjaitan claimed that the use of the term "comfortable" is not only based on his personal opinion but also from the studies of several international institutions, including the IMF, the World Bank, and other international credit rating agencies.
The minister maintained that he routinely offered explanations on the economic conditions and handling of the COVID-19 pandemic to those institutions to obtain inputs on policies undertaken by Indonesia in order to restore the economy amid the pandemic.
"They always say that our program is a very comprehensive one, perhaps to some extent, the best among emerging markets. Hence, in fact, our execution (of the program) is the most important aspect. The program has been well-prepared," he remarked.
Coordinating Economic Minister Airlangga Hartarto had earlier forecast Indonesia’s economic growth in 2020 to touch the negative level at minus 0.49 percent owing to the COVID-19 pandemic.
"In the third quarter, it is expected to improve with a prediction of minus two, minus one, or we are also upbeat about it being positive," he stated at the launch of the Coalition for Joint Action Against Corruption (CAC) Indonesia.
In his presentation on the economic growth of several countries, including Indonesia, Hartarto projected Indonesia's economic growth in the third quarter of 2020 to reach the negative level at minus one percent.
In the fourth quarter of 2020, it is estimated to improve to a positive 1.38 percent, so economic growth in 2020 is estimated to touch the negative level at minus 0.49 percent. Related news: Rupiah weakens in interbank market over recession concerns
Related news: Jokowi optimistic of Indonesia's economy showing positive trend in Q3
Translator: Yashinta Difa Pramudyani
Editor: Rahmad Nasution
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