Jakarta: President Joko Widodo (Jokowi) was buoyant about the domestic economy showing a positive trend in the third quarter of 2020, with acceleration of the state budget absorption to boost the public's purchasing power and consumption.
"Budget realization should be accelerated, once again, especially in the third quarter of 2020. If we can speed up budget spending, we will have the opportunity to register positive (growth)," Jokowi stated during his visit to the West Java's Coordination Post for Covid-19 Handling in Bandung, West Java, on Tuesday.
The president reminded ministries and local governments to step up budget absorption.
The head of state has also highlighted that West Java's economic growth had contracted by 5.9 percent in the second quarter of the year.
"We are optimistic that it would record a positive growth, but hard work is needed. Hence, I called on the heads of districts and mayors to speed up budget realization," he remarked.
Currently, a total Rp170 trillion of the local governments’ budget nationwide deposited in banks had yet to be absorbed. Concurrently, the public is in need of stimulus to revive economic activities that have been sluggish owing to the covid-19 pandemic, Jokowi stated.
"It means that we need to speed up (budget) spending, especially in the third quarter. The key would be in July, August, and September, so that we will not plunge into an economic recession," the president stated.
Indonesia's gross domestic product (GDP) in the first quarter has recorded a growth of 2.97 percent year-on-year (yoy), but it contracted by 5.3 percent (yoy) in the second quarter of the year.
Jokowi emphasized that the economy dropping to negative territory in the second quarter of 2020 should be a caveat to bring about a turnaround to return to its positive trend in the third quarter of the year.
However, Jokowi believes that Indonesia's economy in the second quarter of 2020 is better than some other countries.
"Thank God, our economic growth stood at -5.32 percent, while others, such as Italy plunged to -17 percent; Germany, -11 percent; France, -19 percent; and the United States, -9.5 percent. Hence, budget realization will be accelerated, especially in the third quarter of 2020," President Jokowi noted. (antara)