Indonesia is on the Verge of Recession, what should we do?
Jakarta - The word Recession is now a hot topic of conversation everywhere. People are starting to wonder what will happen, even though many of them don't yet know what to do.
Fortunately, this recession was predictable before it occurs so we can be prepared. And even more fortunate (maybe not exactly lucky), that not only Indonesia but also major countries and other developed countries were affected by this recession.
To be honest, if you look at the data from the Indonesian Central Statistics Agency (BPS), Indonesia's economic condition was not well before the arrival of the COVID-19 pandemic. From the data taken from BPS, which has been graphed, it can be seen that since the first quarter in In 2019 last year, the growth of Indonesia's Gross Domestic Product (GDP) itself began to decline slowly, from 5.18% in Q4 2018 to only 5.07% in Q1 2019.
The decline was even more pronounced when entering Q4 in 2019 and decreasing in Q1 2020 even though it was still in the green zone, aka it was still growing positively. It was only in Q2 of 2020 that the BPS announced yesterday, that there was a contraction, namely negative growth of minus 5.32% which was Lower than the prediction of the previous Minister of Finance and compared to consensus.
The question is, has Indonesia entered a recession?
Many other countries in the world have declared themselves entering into recession. Even developed countries such as Britain, France, Germany, and America even though their economic growth during the Q2 2020 pandemic experienced a significant negative, far deeper than Indonesia. For now, Indonesia's position is only behind South Korea and China.
Again answering the question whether Indonesia has recession? The answer is uncertain because we still have to wait for the report in Q3 2020 which will most likely be announced in October 2020.
But seeing the impact of the COVID-19 pandemic is no joke. Although many observers have blown positive winds to encourage the public to move positively, it cannot be denied that this pandemic has also hit the middle and lower class economic joints which have been hailed and always been the mainstay of the government's backbone during the 1997-1998 economic crisis and the global crisis. 2008.
In both crises, it did not reach the level of Micro and Small Enterprises, only playing in the big business setting. That is why in the previous 2 crises the purchasing power of the middle to lower middle class Indonesians continued to move and became a pillar for the safety of the Indonesian economy.
Meanwhile, COVID-19 is different this time. The impact of the economic downturn also affects and is felt by all levels of society, including the middle to lower classes and MSMEs. The disintegrating purchasing power causes the middle and lower class to not spend, so that Indonesian consumption is low.
Meanwhile, the stimulus provided cannot be fully felt to the middle to lower layers. This is what makes current conditions unique and may have to be taken into account and carefully.
It is true that Indonesians are 'resilient' and strong against calamities and trials, but it is too PEDE that Indonesia will be all right is also not a wise thing. Therefore we must always be vigilant.
The same thing we must do with our personal finances. We must always be vigilant in managing finances. What should we do in preparation for this recession? We will discuss the complete discussion and strategy in the next article.
But there is 1 leak that you can do from now on, which is to save money and record all your expenses. Keeping track of your expenses will help solve your leakage and wasteful expenses.
By taking notes, you can know and monitor where your money is going. You can take notes using regular notes or on a laptop or you can use an application.
There are several steps that must be taken to prepare for this recession, so that if a recession does occur and is officially announced by the government, then you can remain calm and live life without fear because you have managed finances better than other people.
