Purchasing Power, MSMEs Keys to Speed Up Post-COVID Economic Recovery

COVID-19 stimulus
Summary

McKinsey Indonesia estimates that Indonesia's economy will recover from the impact of the COVID-19 pandemic faster than other countries. The reason is that the Indonesian economy is mostly supported by domestic consumption, which contributes around 50 percent to 60 percent of the Gross Domestic Product (GDP).

However, McKinsey Indonesia Managing Partner Philia Wibowo said that such an economic structure did not guarantee that Indonesia's economy would be better than other countries after the pandemic. Another influencing factor is the government's economic strategy to deal with the impact of the pandemic.

"If all countries decline at the same pace, we actually have the ability to rise faster. Why? Because our economy does not depend too much on tourism, our economy depends a lot on domestic consumption," said Philia, Wednesday (10/21).

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