Virtual Public Discussion – Anticipating a Covid-19 Global Economic Crisis: How Should Indonesia Get Prepared?
On Thursday, 30 April 2020, FPCI held a virtual discussion on “Anticipating a Covid-19 Global Economic Crisis: How Indonesia Should Get Prepared?” featuring Gita Wirjawan, Indonesian Minister of Trade (2011-2014) and Shinta W. Kamdani, Vice Chairwoman for International Relations, Indonesian Chamber of Commerce & Industry (KADIN). The discussion was moderated by Dr. Dino Patti Djalal, Founder, FPCI.
Gita Wirjawan was the first to present his analysis on how health crisis has enveloped the world over and how it has effected global and the Indonesian economy. At the end of his presentation, Gita Wirjawan came up with a possible solution by way of looking at what might have happened on the demand and supply side. According to him, the global economy today is much more intertwined and integrated vis-à-vis how it was in 2008, 1998 much less in the 1930s. Regarding the stimulus package, he considered that the package that has been announced by the Indonesian government may not be sufficient in the context of how the overall Indonesian economy has been, to some extent if not great extent greatly affected. Indonesia stimulus package is only at around 2.5% of the GDP and it needs to be increased.
Shinta W. Kamdani continued the session highlighting the economic intervention in the face of various scenarios of COVID-19 crisis and reviewing Indonesia’s policy response. According to her, sectors such as medical supply & services, food processing, agriculture will remain thriving while tourism, automotive, education, financial sectors, oil and gas are on the down side. Indonesia’s overall real sector’s turnover and profit is projected to lose more than 50% loss this year. In a survey, 35.4% of businesses stated that their turnover is projected to lose more than 50%. For profit projection, 21.2% of businesses stated that they are bracing for more than 50% loss this year.