JAKARTA. Former Minister of Finance, Chatib Basri, predicted that the Indonesian economy would enter a recession in Q2 2020.
"It means, in April-June 2020, it will be the beginning of a drop in the gross domestic product (GDP), and economic growth in the real sector will be negative," Chatib Basri said in an online dialogue on Wednesday (15/4).
According to him, economic growth in April-June 2020 will fell to the level of 2%, due to weakening consumption. Investment activities will also decline, especially portfolio investment.
Moreover, Q2 2020 is a high season momentum, due to Ramadan and Eid, where household consumption increases significantly. "In Q2 2020, Indonesia may enter recession," Chatib Basri said.
The recession was marked by a wave of layoffs because many companies were unable to pay bank loans. Thus, layoffs are inevitable. (AM/AR)