Economy: The International Monetary Fund (IMF) cut its projection for the Indonesian economy while predicting the global economy would slump into a deeper recession this year. The IMF now says the Indonesian economy would slump 0.3 percent this year, before rebounding to a 6.1 percent growth in 2021. The world economy is likely to see…
Economy: Indonesia’s economy would suffer a contraction of 1.0 percent this year before recovering and grow 5.3 percent in 2021, according to the recent forecast by Asian Development Bank (ADB). The stronger household discretionary spending, improved investment climate, and a recovery in the global economy would help the recovery next year. “The COVID-19 pandemic has…
Economy: Finance Minister frankly conveyed a pessimistic estimation that Indonesian economy will be increasingly depressed in the second quarter of 2020 when the economy would start contracting. In the quarter economic growth is expected to decline to -3.1 percent, far below the growth in the first quarter of 2020 of 2.97 percent. The increasingly depressed…
Economy: Another bleak prospect of the Indonesian economy was conveyed by the Organization for Economic Cooperation and Development (OECD). The multilateral organization estimated Indonesia’s GDP would drop by 2.8 percent this year, or by 3.9 percent if a global second wave of Covid-19 infections occurs later in 2020. In 2021, Indonesia’s economy would grow by…
BOTTOM LINE: Taken together, the indicators during May and up until mid-June 2020 indicate that the Indonesian economic state of play remained weak amid the Covid-19 pandemic. The inflation was very low, rupiah and stock index strengthened but face volatilities ahead, manufacturing was on a deep contraction phase, export and import fell sharply, and state…
Economy: Uncertainty on the end of Covid-19 pandemic has caused the World Bank conveyed its pessimistic views on the Indonesian economy. The World Bank estimates that the Indonesian economy in 2020 might experience zero growth. One reason is because of Large-Scale Social Restrictions (PSBB) to break the chain of transmission of Covid-19 which makes stagnation…
Economy: Morgan Stanley predicted that Indonesia would suffer a low impact on the global recession due to the Covid-19 pandemic. The country might exit from the crisis quickly because the fairly small dependence on exports compared to other countries in the region. In its research, Morgan Stanley analyzed which countries will return to the GDP…
To alleviate the COVID-19 pandemic, large-scale Social Restrictions (PSBB) has been adopted in a number of provinces, regencies, and municipalities in Indonesia. The PSBB is carried out among others by the dismissal of workplaces. In the upcoming period of post-PSBB, it is necessary to perform mitigation effort and the optimal readiness of workplaces to be…
Economy: As a further effort to lessen the economic impact of Covid-19 pandemic, the Indonesian government issued Regulation 23 of 2020 (Reg 23/2020) on the implementation of the National Economic Recovery (NER) program. The program, estimated to cost Rp641.17 trillion or around US$43 billion, is an expansion of the incentives in the stimulus packages launched…
LOWER DEMAND helped to keep the inflation at low level despite Ramadhan fasting month, which normally escalates the general prices. In Apr., inflation only reached 0.08% (m-t-m), fell from 0.1% in Mar. Rupiah’s daily movements was volatile but on an appreciation trend, and it continued until the first week of May. BI remained stand by…