Jakarta –
Economy Indonesia officially recession after the release of economic growth in the third quarter of 2020, which actually contracted again by -3.49%. Finance Minister Sri Mulyani Indrawati actually considered that the record showed that the worst had been passed.
Sri Mulyani explained, when compared to the Indonesian economy in the second quarter of 2020 which was -5.32%, the economic contraction showed improvement. He believes that currently the Indonesian economy is heading towards improvement.
“This shows that the process of economic recovery and the turning point of national economic activity is pointing towards the positive zone. All components of economic growth, both from the expenditure side, have increased as well as from the production side,” he said in a virtual press conference on Thursday (5 / 11/2020).
According to him, the improvement in economic conditions was driven by the role of fiscal stimulus in handling the COVID-19 pandemic and the national economic recovery program. Apart from that, the faster absorption of government budget expenditures is believed to help move the economy.
“The absorption of state spending experienced an acceleration or increase in the third quarter until the end of September, namely in the third quarter it grew 15.5%. Mainly supported by the realization of social assistance and support for the business world, especially small and medium enterprises,” he explained.
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