BERITASOLO ■ The spread of the corona virus or Covid-19 is not the only cause of things that have caused the current economic downturn in Indonesia. Without Corona, the Indonesian economy is predicted to fall.
This was conveyed by the Former Coordinating Minister for the Economy Rizal Ramli assessing a joint discussion on Indonesian Development (Coffee) with Rizal Ramli, on Thursday (07/16/2020).
"Corona is indeed a problem. But it is not the only problem. 1.5 years ago we said that there was a problem due to three factors (which made the Indonesian economy go down). First the trade balance was negative, the second current account was negative. Then, when viewed in terms of "the primary balance is negative, meaning that the state to pay its own debt interest must pay using new debt," Rizal Ramli said.
Furthermore, the man who is also an activist said, before the spread of the Corona virus, he had issued an analysis. And the same thing was done by him in 1996.
"Before Corona we had issued an analysis, if I say we were like boxers. In 1998 it was the private sector that had the most debt, and the boxer was hit by a jab. Earlier, two years before the incident, we in 1996 said that we had too much debt. and the value of the rupiah is '8% over', he said.
According to him, in 2019 he had provided an economic-related analysis. He said that Indonesia has a lot of debt. Like a boxer who has swayed, then given a doping.
"Today, the same thing in 2019 we have a lot of debt, and have been rocked but doped with a loan. But this doping will not take very long, because it was hit by a jab," he added.
In addition, Rizal Ramli said that in the Jakarta Stock Exchange, there were many zombie companies. Which means the company is still running, but does not have enough income to cover the debt.
"At the Jakarta Stock Exchange we say many zombie companies, because of default," said Rizal Ramli.(**)
