Jakarta: Indonesian economy could recover at the latest by mid-2021 owing to the discovery of the covid-19 vaccine in early next year, Institute for Development of Economics and Finance's (Indef's) senior economist, Iman Sugema, stated.
"The economic recovery really relies on how immediate the discovery of the covid-19 vaccine is. If it can be reached on time, Indonesia's economy will rebound in mid-2021," Sugema explained.
Speaking at a discussion organized by Indef in Jakarta on Tuesday, the economist remarked that the discovery of the novel coronavirus vaccine was, therefore, the key to responding to the major impacts of this pandemic.
Availability of the covid-19 vaccine would offer certainty to businesspersons and the industrial sector to revive production as the demands of consumers also start growing, he noted.
"If the handling of this covid-19 pandemic gets protracted, more companies will encounter difficulties, and the economic recovery process will also become more challenging," he noted.
However, if the covid-19 pandemic were to be handled properly, Sugema projects Indonesia's economic growth to likely exceed 5.02 percent recorded in 2019.
Indef had earlier forecast that Indonesia's economic performance in 2021 would really depend on the improvements that it did in 2020.
At the end of 2020, Indef projected Indonesia's economic growth rate to be recorded at between minus 0.53 percent and minus 0.14 percent if the absorption of expenditure from fiscal stimulus were to reach at least 60 percent.
Hence, Indef expressed belief that Indonesia's economic growth in 2021 could be recorded between 2.54 percent and 3.77 percent or lower than that of the government's forecast at 4.5-5.5 percent. (antara)