Economic contraction of 0.6-0.9 percent to continue in 2021: Minister

National Development Planning Minister Suharso Monoarfa has projected Indonesia’s economy to contract 0.6-0.9 percent year-on-year in the first quarter of 2021 on account of the COVID-19 pandemic.

“In the first quarter, the economy will still contract in the range of 0.6 percent to 0.9 percent (yoy),” the minister remarked at a national development planning meeting 2021 in Jakarta on Tuesday.

Monoarfa, concurrently chief of the National Development Planning Agency (Bappenas), affirmed that efforts to recover the economy from the pandemic’s fallout can be bolstered in the second quarter when the number of COVID-19 cases can be brought under control.

Hence, the national economy is projected to recover and grow positively in the second quarter, he remarked.

Monoarfa noted that development of the Chinese economy in the past year had set an example for economic improvement. The Chinese economy recovered at a swift pace in the wake of the COVID-19 pandemic.

The Chinese economy has recovered since the second quarter of 2020 after contracting deeply in the previous quarter. It managed to rebound in the first quarter of 2021, with a notable growth of 18.3 percent.

“The key to this accurate and very quick economic recovery is linked to its success to control the spread of COVID-19,” he stated.

Meanwhile, Indonesia’s COVID-19 caseload has continued to decline, though several provinces, such as Bengkulu, Jambi, Bangka Belitung, Riau Islands, and Riau, have witnessed a rise in the number of new cases.

Hence, he appealed to the public to remain vigilant and follow health protocols to avoid the surfacing of new clusters of COVID-19.

 

Source: Antara News

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