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Jakarta Post

Year-end holidays won’t spur consumption if COVID-19 uncontrolled: Economists

  • Adrian Wail Akhlas

    The Jakarta Post

Jakarta   /   Mon, November 30, 2020   /  03:24 pm
The Jakarta Post Image
Medical workers take blood samples from tourists at the Puncak tourist area in Bogor, West Java, on Oct. 29. (Antara/Yulius Satria Wijaya)

The 2020 year-end holiday will not be effective in boosting household spending and the Indonesian economy as a whole as long as the coronavirus pandemic remains uncontrolled, economists say, while the government plans to cut the holiday period short to curb the outbreak. The public holiday period will not lift consumption to pre-pandemic levels in the fourth quarter, Center of Reform on Economics (CORE) Indonesia research director Piter Abdullah said, adding that a lack of public optimism about the economy would limit potential economic activity. “As the upper-middle class are concerned over the virus spread, they intentionally cut back spending and prefer to stay at home,” he told The Jakarta Post on Friday. “As long as they do not have the confidence to make purchase of goods and services, the economy will remain sluggish.” Upper-middle class consum...