Indonesia's economic recovery efforts are on right track: official

Indonesia's economic recovery efforts are on right track: official

Arif Budimanta, Presidential Special Staff for Economic Affairs

Jakarta (ANTARA) - The government is progressing positively in its endeavors to restore the country's economy impacted by the COVID-19 pandemic despite continued economic contraction in the 2020 third-quarter, Presidential Special Staff for Economic Affairs Arif Budimanta stated.

"We are optimistic that the economic recovery would be on the right track, and Indonesia is capable," Budimanta noted in a statement here on Thursday.

The Central Statistics Agency (BPS) had earlier announced that Indonesia's economy had shrunk 3.49 percent on an annual basis in the third quarter, narrower than the second-quarter contraction of 5.32 percent.

"Our economy has shown significant improvement and progress as compared to the second quarter when the pandemic began in Indonesia," he stated while attributing the government's spending to this positive development.

President Joko Widodo (Jokowi) has instructed his ministers to streamline the budget to facilitate economic recovery, especially through the COVID-19 handling program.  

The National Economic Recovery Program (PEN) has proven effective in reversing the economic downturn that Indonesia had experienced since March 2020, he pointed out.

The government's spending in the third quarter of 2020 grew 9.76 percent and contributed 9.69 percent to the economic output.

Household spending in the third quarter of 2020 fell 4.04 percent, while investment shrank 6.48 percent.

The country's exports declined 10.82 percent, while its imports plunged 21.86 percent.

"The government itself, until the third quarter of 2020, has spent Rp1,840.9 trillion of the state budget, or 67.2 percent of the total state expenditure. This figure is up 15.4 percent as compared to the same period in 2019," he pointed out.

The government, under the COVID-19 Handling and National Economic Recovery Program, disbursed a total of Rp268.3 trillion, or 38.6 percent of the total budget ceiling, as of Sept 23.

As of Nov 2, the realization had reached Rp366.86 trillion, or some 52.8 percent of the total ceiling at Rp695.2 trillion.

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