“As per data we have collected, (economic growth) in the third quarter will surely be better than in the second quarter,” executive secretary I of the Committee for COVID-19 Handling and Economic Recovery, Raden Pardede, said in an online discussion here on Wednesday.
The Indonesian economy contracted 5.32 percent in the second quarter after growing 2.97 percent in the first quarter.
Pardede said he believes the contraction in the second quarter hit the bottom and the economy will improve in the third quarter.
Finance Minister Sri Mulyani Indrawati had predicted earlier that the economy will contract within the range of minus 2.9 to minus 1 percent in the third quarter.
"If we look at the forecast from all sides, including (the one made by) the finance minister, the third-quarter growth will be better than the second-quarter growth. It is important to note that the second quarter hit the bottom. What we have to do now is (think about) how to speed up the recovery," Pardede said.
The government has rolled out a stimulus of Rp695.2 trillion for COVID-19 handling and economic recovery. The fund, which is a manifestation of the government's intervention, is expected to boost the national economy.
As of September 16, 2020, the realization of budget funds for COVID-19 handling and economic recovery has reached Rp254.4 trillion, or 36.6 percent of the ceiling of Rp695.2 trillion.
Budget allocations for social protection have reached Rp134.45 trillion, or 60.6 percent of the ceiling of Rp203.9 trillion.
However, the realization of budget funds for business incentives have touched Rp22.23 trillion, or 18.43 percent of the ceiling of Rp120.61 trillion. Meanwhile, there has been no realization of the Rp53.6-trillion budget for corporate financing.
The realization of the health budget has reached Rp18.45 trillion, or 21.1 percent of the ceiling of Rp87.5 trillion, and the realization of budget funds for ministries/institutions and regional governments stands at Rp20.53 trillion, or 42.2 percent of the ceiling of Rp106.11 trillion.
"If there is no government intervention, there will be (an) extraordinary recession," Pardede remarked.
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