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Millions to lose jobs, fall into Poverty as Indonesia braces for Recession

Daniel808

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Millions to lose jobs, fall into poverty as Indonesia braces for recession
  • Adrian Wail Akhlas
    The Jakarta Post
Jakarta / Wed, April 15, 2020 / 07:30 am
2019_10_16_80885_1571190849._large.jpg

The government estimates that up to 3.78 million Indonesians will fall into poverty and 5.2 million lose their jobs during the coronavirus pandemic, as the International Monetary Fund (IMF) projects the worst global recession since the Great Depression. (JP/Ricky Yudhistira)

1.1 million to 3.78 million people could fall into poverty and 2.9 million to 5.2 million workers could lose their jobs.

  • “COVID-19 has resulted in the global economy entering a recession,” Sri Mulyani said in a teleconferenced briefing, reiterating the government’s use of state funds to increase spending on health, social safety and support for businesses.

    The minister explained there would be “support for business activity from the informal sector to micro, small and medium enterprises and the business world. Because this is related to layoffs and social repercussions.”

    The IMF on Tuesday released its new World Economic Outlook titled “The Great Lockdown”, estimating Indonesia’s economic growth to plunge to 0.5 percent this year from a four-year low of 5.02 percent in 2019.

    The IMF also projects that the country’s unemployment rate will rise to 7.5 percent this year, from last year’s 5.3 percent as the pandemic has upended supply chains, forcing companies to lay off employees, and crushed demand for goods as consumers stay at home.

    Read also: Indonesia braces for recession, activates crisis protocol

    As many as 2.8 million people have lost their jobs as of Monday, according to data from the Manpower Ministry and the Workers Social Security Agency (BPJS Ketenagakerjaan). More than half were furloughed and placed on paid or unpaid leave.

    “The significant downward revision to the 2020 growth projection reflects large anticipated domestic disruptions to economic activity from COVID-19,” the report says. The IMF expects the virus to hit Indonesia’s economy as the country relies heavily on the export of commodities rather than finished goods.

    “Among developing economies, all countries face a health crisis, severe external demand shock, dramatic tightening in global financial conditions, and a plunge in commodity prices,” the report says. “They will have a severe impact on economic activity in commodity exporters.”

    However, the IMF expects that recovery will take place in 2021 as the country’s economy may expand by 8.2 percent, the highest since 1995 during former president Soeharto's leadership.

    The global economy is projected to contract by 3 percent this year, but growth is expected to recover in 2021 with a projected rate of 5.8 percent.

    “It is very likely that this year the global economy will experience its worst recession since the Great Depression, surpassing that seen during the global financial crisis a decade ago,” IMF chief economist Gita Gopinath said. “Worse growth outcomes are possible and even likely.”

    “This would follow if the pandemic and containment measures last longer, emerging and developing economies are even more severely hit […] or if widespread scarring effects emerge due to firm closures and extended unemployment,” she added.

    Read also: Avoiding quarantine will inflict greater economic harm, says survey

    The highly contagious novel coronavirus has infected more than 1.9 million people and killed over 119,000. In Indonesia, more than 4,500 people have tested positive for COVID-19 so far, while at least 399 have died.

    President Joko “Jokowi” Widodo has declared a public health emergency and a national disaster as large-scale social restrictions are in place in several regions with high numbers of confirmed cases.

    “The economic growth target for 2020 will be corrected sharply, but this will not happen only in Indonesia but also in other countries,” Jokowi said on Tuesday. “We must prepare ourselves for every scenario and work very hard for public health recovery and economic recovery.”

    The government’s baseline scenario is for Indonesia’s economic growth to drop to 2.3 percent, the lowest in 21 years, with a worst-case scenario of an economic contraction of 0.4 percent.
https://www.thejakartapost.com/news...overty-as-indonesia-braces-for-recession.html

The economic look very bleak
 
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5,2 million is big

What you guys think about this as Malaysians? Do those unemployed will try searching jobs in Malaysia after epidemic
@powastick @Nan Yang @rambro @UMNOPutra

Indonesia braces for bad times, up to 5.2 million may lose jobs
erijweew_1587018783.jpg

Women carry woven mats to sell as they walk on a street in Banda Aceh on April 15, 2020.- AFP
By New Straits TimesApril 16, 2020 @ 2:33pm

JAKARTA: Indonesia anticipates grim repercussions as a result of the Covid-19 pandemic as the International Monetary Fund (IMF) projects the worst global recession since the Great Depression.

The government estimates 1.1 million to 3.78 million Indonesians will fall into poverty and 2.9 million to 5.2 million could lose their jobs during the downturn, with economic growth projected to be at the lowest level since the 1998 financial crisis.

According to The Jakarta Post, Finance Minister Sri Mulyani Indrawati said this in a teleconference briefing on Tuesday.

“Covid-19 has resulted in the global economy entering a recession,” she said, adding that this prompted the government to use state funds to increase spending on health, social safety and support for businesses.

The minister added that there would be “support for business activity from the informal sector to micro, small and medium enterprises and the business world... because this is related to layoffs and social repercussions”.

In its new World Economic Outlook titled “The Great Lockdown”, IMF estimates Indonesia’s economic growth to plunge to 0.5 per cent this year from a four-year low of 5.02 per cent last year.

IMF also projects that the country’s unemployment rate will rise to 7.5 per cent this year, from last year’s 5.3 per cent as the pandemic has upended supply chains, forcing companies to lay off employees, and crushed demand for goods as consumers stay at home.

The Manpower Ministry and the Workers Social Security Agency (BPJS Ketenagakerjaan), in a report on the crisis, estimate a total of 2.8 million people have lost their jobs up to Monday. More than half were furloughed and placed on paid or unpaid leave.

“The significant downward revision to the 2020 growth projection reflects large anticipated domestic disruptions to economic activity from Covid-19,” the report says.

IMF expects the virus to hit Indonesia’s economy as the country relies heavily on the export of commodities rather than finished goods.

“Among developing economies, all countries face health crisis, severe external demand shock, dramatic tightening in global financial conditions, and a plunge in commodity prices,” the report says.

“They will have a severe impact on economic activity in commodity exporters.”

IMF expects recovery to take place next year as the country’s economy may expand by 8.2 per cent. The global economy is projected to contract by three per cent this year, but growth is expected to recover next year with a projected rate of 5.8 per cent.

“It is very likely that this year, the global economy will experience its worst recession since the Great Depression (1929-1933), surpassing what was seen during the global financial crisis a decade ago,” IMF chief economist Gita Gopinath said.

“Worse growth outcomes are possible and even likely. This would follow if the pandemic and containment measures last longer, emerging and developing economies are even more severely hit or if widespread scarring effects emerge due to firm closures and extended unemployment.”

https://www.nst.com.my/world/region...sia-braces-bad-times-52-million-may-lose-jobs
 
. . . . . . . . . . .
NO thanks, thats your favorite "STREET FOOD" only, not our taste:rofl:
BAT SOUP in Indonesia!! (First Time, Last Time)
View attachment 624369:rofl:
https://observers.france24.com/en/2...-bat-soup-debunk-videos-viral-palau-indonesia

Well what's new? Indonesians also eat dogs, cats, rats, snakes, but remarkably they still able to shamelessly point finger to others especially to China. Such hypocrite people.
Eating Snakes, Rats, and Dogs in Minahasa: Indonesian Bushmeat

Dog Meat in Bali, Indonesia Documentary
 
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Lol, even when people in South East Asia kill and eating whatever exotic animals or other only in China those virus killer keep appearing, SO WHY?
 
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