KONTAN.CO.ID – JAKARTA. Minister of Finance Sri Mulyani Indrawati as Chair of the Financial System Stability Committee (KSSK) revealed that financial system stability in the third quarter of 2020 was normal and maintained. As a result, these conditions can sustain the progressively improving process of economic recovery.
Minister of Finance explained, although still faced with economic uncertainty due to the impact of Covid-19, KSSK continues to strengthen its synergy in order to accelerate economic recovery while maintaining financial system stability.
In addition, the Minister of Finance also stated that economic activity in the third quarter of 2020 had shown a recovery after experiencing considerable pressure in the second quarter.
“In the second quarter, the economic conditions in Indonesia and in many other countries have come under heavy pressure. But in the third quarter we saw that we had experienced gradual recovery, ”said Sri Mulyani in the KSSK Press Conference, Tuesday (27/10).
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This is in line with the revised projection of the International Monetary Fund (IMF) regarding global economic growth which was revised from -5.2% to -4.4% in 2020.
The IMF revision was mainly driven by the recovery in economic activity in the third quarter of 2020 in several developed countries and China. Meanwhile, global mobility has also slowly increased following the easing of social restriction policies.
Meanwhile in Indonesia itself, the domestic economy has also shown improvement. This is driven by the acceleration of the realization of the fiscal stimulus or APBN. Meanwhile, from the export side, million experienced a recovery, especially in iron, steel and textile commodities.
“Government spending also increased significantly in the third quarter, especially on social assistance and support to MSMEs through the PEN program,” said the Minister.
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