Friday Briefing

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…

Monday Briefing

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…

Friday Briefing

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…

Monday Briefing

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…

Friday Briefing

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…

Monday Briefing

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…

Friday Briefing

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…

Monday Briefing

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…

Friday Briefing

Economy: Moody’s Rating Agency predicted a decreasing growth of Indonesia’s economy to reach below 5 percent in 2020 as a result of a global slowdown due to the Covid-19 pandemic. According to Moody’s, the “global growth remains tepid and as Chinese demand for commodities could soften on the back of the coronavirus outbreak.” Nevertheless, even…

Monday Briefing

Economy: In its latest World Economic Outlook titled “The Great Lockdown”, IMF estimates Indonesia’s economic growth to plunge to 0.5 per cent this year from a four-year low of 5.02 per cent last year. IMF also projects that the country’s unemployment rate will rise to 7.5 per cent this year, from last year’s 5.3 per…