Coronavirus Impact, The Number of Unemployment Can Increase to 5.2 Million of People

TRIBUNBATAM.id - The Minister of Finance, Sri Mulyani Indrawati, explained that the government had compiled several scenarios related to the coronavirus pandemic's impact on the economy.

One of them is economic growth that is threatened negatively so far this year.

The depressed economic performance also had an impact on the social conditions of the community. 

The former Managing Director of the World Bank also said that the open unemployment rate would experience a significant increase this year.

Based on government calculations, for a severe scenario, there will be an additional 2.9 million unemployed people in Indonesia. As for the more severe scenario, the number of unemployed will increase to 5.2 million people. 

"Unemployment which has been declining in the last five years will experience an increase. A severe scenario of 2.9 million people has increased unemployment and could be worse, namely 5.2 million people," Sri Mulyani said in a video conference on Tuesday (4/14/2020 ).

As for the latest data from the Central Statistics Department (BPS) as of August 2019, the number of open unemployment is 5.28 percent or reaching 7.05 million people. 

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The number increased in amount when compared to August 2018 of 7 million people or decreased as a percentage of 5.34 percent. 

Previously Sri Mulyani also briefly explained, the poverty rate would also experience a significant increase due to the coronavirus pandemic.

In this very difficult situation, there will be an increase in the number of poverty to 3.78 million people.

The State Treasurer also explained, in the economic scenario due to the coronavirus pandemic that the government has prepared, economic growth that was targeted to grow at around 5.3 percent this year is projected to grow to 2.3 percent. 

Even if this pandemic is not immediately addressed, economic growth throughout 2020 will grow negatively by 0.4 percent. 

She further explained that depressed economic conditions would also have a social impact.

The poverty rate, according to him, will increase up to 1.1 million people for severe scenarios. As for the more severe scenario, the additional poverty rate will be as much as 3.78 million people.

"Our poverty rate can rise with an additional 1.1 million people or a more severe scenario we will face additional poverty of 3.78 million people," she said. (*) 

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