Economy: Bank Indonesia (BI) estimates that Indonesia’s economic growth in 2021 will be in the range of 6.6 percent and 7.1 percent. The growth would be contributed by the government’s fiscal stimulus of around 3.1 to 4 percent to the GDP, according to the governor of BI at a virtual hearing with the House of Representatives last week. The economic growth was also attributed by the growing loans and business restructuring program, as well as the impact of delayed monetary expansion in 2020 for economic recovery from the COVID-19. The increasing global economic growth can also boost Indonesian exports.
The governor said mentioned another contribution for economic performance in 2021 would be the increase in foreign and domestic investment due to the implementation of structural reforms. Likewise, the economic growth next year could also be supported by the stronger rupiah exchange rate which is expected to reach at an average range between Rp14,900 and Rp15,300 rupiahs per US dollar in line with the improving global economy and declining global financial market uncertainty. The movement of the rupiah rate in 2021 will be stimulated by the increase in the high investor confidence on the outlook for the Indonesian economy, and the attractive level of Indonesian investment returns.
Currency: Following the volatility since April, rupiah eventually reached its strongest value when its rate recorded in the range between 15,430 and 15,295 against U.S. dollar. It turned out that rupiah could show its strength when it hit the highest rate of 15,000 against the greenback in end of last week closing session of the Jakarta inter-bank market. Previously, Bank Indonesia, was optimistic that rupiah would strengthen to 15,000 per U.S. dollar by the end of this year in line with the lender’s policy on efforts to stabilize the value of rupiah against foreign currencies including the U.S. dollar.
The central bank would continue to maintain and stabilize the value of rupiah at the current position or even higher by intervening in the spot market and buying state bonds on the secondary market. Some indicators showed the strengthening of the rupiah value including the high interests of domestic and foreign investors who buy state bonds on the market. “The positive sentiment can be seen from the high number of bids on the state bonds which were valued at 44.4 trillion rupiahs eq. at around US$2.9 billion. The indicators also include the prediction of the current account deficit which could be below 1.5 percent of GDP in the first quarter of 2020, or lower than the previous estimation of 2.5 percent to 3 percent.
Business: : About a third or around 15,000 from 40,000 manufacturing companies remain operational in Indonesia in the wake of the Covid-19 pandemic. The update was revealed by the Coordinating Economic Minister last Thursday. In addition, 4.7 million workers in the manufacturing sector were still working out of the usual 17 million, attributing it to about 20 percent of the country’s GDP. The minister hopes that companies will be back in operation when the situation returns to normal.
Many businesses in the country have temporarily shut down or are working at minimum capacity to comply with the government’s stay-home order to contain the disease that has infected over 10,000 people nationwide. As a result, the country’s Purchasing Managers’ Index, a monthly survey of trends in the manufacturing sector, recorded a contraction to 45.3 from 51.9 per cent between February and March, the steepest decline since the survey began in 2011. As many as 2.2 million people are out of work, according to the Manpower Ministry in its latest update on 20 April. More than half are formal sector workers temporary dismissed or permanently laid off by 43,690 firms.
Ecommerce: The Ministry of Communication and Information Technology has requested Tokopedia to conduct an internal investigation, following the leak of its consumer data. The technical team of the ministry has conducted technical coordination to follow up on the issue of breaking into user data. The minister asked Tokopedia to do three things to ensure the safety of user data. First, securing the system to prevent the expansion of breach data. Second, notify the account owners on the possibility of personal data exposed. Third, conduct internal investigations to ascertain alleged breach data. If it has happened, find out the cause of the breach data.
Tokopedia, Indonesia’s largest e-commerce platform, said it was investigating an attempted hack and claims that the details of millions of its users had been leaked online. The company found that there had been an attempt to steal data from Tokopedia users. Tokopedia ensures that crucial information such as passwords remains successfully protected behind encryption. At this moment, it continues to investigate further into this matter and there is no additional information that the company can share. Data breach monitoring firm Under the Breach published a Twitter post on 2 May showing screenshots from an unnamed individual who claimed he had acquired the personal details of 15 million Tokopedia users during a hack in March on the e-commerce site. The screenshot shows names, emails and birthdays, the alleged hacker informed his or her possession of a much bigger user database and asks for assistance to “crack” users’ passwords. The hacker updated the offer for the details of 91 million users cost U$5,000.