Source: Cnbcindonesia.com | 10 Jun 2020

The Coordinating Ministry for Economic Affairs said economic indicators had started to creep up in June, after a sharp decline in the April and May periods.

Coordinating Minister for the Economy Airlangga Hartarto explained that the Covid-19 pandemic resulted in the realization of economic growth in the first quarter of 2020 under pressure. The realization showed that the economic growth in the first quarter of 2020 was lower than the fourth quarter of 2019 which was 4.97% and much lower than the realization of economic growth in the first quarter of 2019 which was 5.07%.

The Central Statistics Agency (BPS) noted that Indonesia’s economic growth in the first quarter of 2020 only reached 2.97%.

In the second quarter of 2020, Airlangga estimates that economic growth will be negative. However, the government hopes that in the second and third quarters there will be a recovery, because currently the government has started to carry out economic recovery, thus economic growth until the end of the year is expected not to be included in the worst scenario.

“Although several forecasts show that Indonesia is estimated to have economic growth in the numbers 0% to 0.5%. However, the government continues to encourage economic growth from 0.5% to 2.3%, ”said Airlangga.

Separately, the Assistance Team for the Coordinating Minister for the Economy, Raden Pardede, explained that Indonesia’s economic data during the last month showed the lowest point. All economic sectors contracted and reached their lowest level.

During January-May 2020, airline business fell 49% (yoy, year on year), much lower than the same period last year of 4% (yoy).

Followed by the hotel business, which fell to 93% (yoy) in May 2020, further down from April 2020 which contracted by 85% (yoy). During January-May 2020, hotel business fell 46% (yoy), much lower than the same period last year, which showed positive 5% (yoy).

The economy is projected to start touching the exit the bottom level or experiencing a recovery and moving upward this month. Although according to Raden, the economy will still move in negative territory in the second quarter of 2020.

“Various sectors of business activity experienced a decline in April and started to stop in May. It has already hit the bottom. In June, when the economy begins to gradually open, the economy will start to move up, ”Raden said in a video conference, Tuesday (9/6/2020).