BOTTOM LINE: Reactivating the economy in many regions slightly changes the Indonesian economic state of play. In June, inflation marginally increased and still at much lower level than last year.  The value of rupiah strengthened last month, but it has been weakening over two weeks of July. Stock market moved in volatile way and it is on an upward trend recently. The Indonesian bonds are still well-performed but charted slower pace of returns’ growth. Economic policies are focused on mitigating the risk of recession if the growths suffered “double dips” in the first and second quarters. Monetary policy is being relaxed through two times BI Rate reductions. Meanwhile, the underperformed budget spending hampered the effectiveness of expansionary fiscal policy for handling the Covid-19 pandemic and supporting economic recovery.

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