President Jokowi Instructs Minister to Implement Credit Restructuring and Relaxation Program for Cooperatives, SMEs

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation
Date 23 Juli 2020
Category: News
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Distribution of Revolving Fund for Cooperatives, Thursday (23/7), at the State Palace, Jakarta. (Photo by: Public Relations / Teguh)

President Joko “Jokowi” Widodo has instructed Minister of Cooperatives and Small and Medium Enterprises (SMEs) Teten Masduki to implement credit restructuring and relaxation program for cooperatives and small and medium enterprises so they will not feel the impact of global economic slowdown.

The President made the statement in his remarks at the Distribution of Revolving Fund for Cooperatives, Thursday (23/7), at the State Palace, Jakarta.

Furthermore, the President said that 215 countries are experiencing economic crisis caused by COVID-19 pandemic.  It is not easy to control the pandemic and at the same time ensure that the economy still runs.

“Three months ago, I called Managing Director of the International Monetary Fund (IMF); she said that the global economy is projected to shrink by minus 2.5 percent this year,” the President said.

The President went on to say that he also called the World Bank two months ago, and it gave a different answer.  The World Bank projected that the global economy would shrink by minus 5 percent.

Meanwhile, the Organization for Economic Cooperation and Development (OECD) projected that the global economy to shrink by minus 6 to minus 7.6 percent this year.

“The economy is always changing every month, very dynamic, and it is  not getting better. For example, it is projected to fall by minus 2.5 percent, next month the projection is minus 5 percent, and the following month minus 7.6 percent,” the President said.

The OECD, the President continued, also predicted economic contractions of several countries, such as, France minus 17 percent, the United Kingdom minus 15 percent, Germany minus11 percent, the United States minus 9.7 percent, Japan minus 8.3 percent, and Malaysia minus 8 percent. Indonesia’s economy in the first quarter of 2020 fall by 2.97 percent but in the second quarter it is projected to shrink by minus 4.3 to 5 percent.

Therefore, the President expressed hope that the country’s economy will increase again in the third quarter of this year. Thus, he urged all to revive the economy.

On that occasion, the President also expressed his gratitude that the number of public consumption has begun to increase. “It is possible that village funds direct cash assistance (BLT Desa), social cash assistance, and staple food aid have stimulated money circulation. These assistances will greatly affect the purchasing power and household consumption, as well as public consumption,” the President added.

Also accompanying the President during the event were, among others, Vice President K.H. Ma’ruf Amin, Coordinating Minister for Economic Affairs Airlangga Hartarto, Cabinet Secretary Pramono Anung, Minister of State Secretary Pratikno, and Minister of Cooperatives and Small and Medium Enterprises (KUKM) Teten Masduki. (TGH / EN)

 

 

 Translated by: Syarifah Aisyah
Reviewed by: Mia Medyana

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