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…

Friday Briefing

Economy: S&P Global Ratings revised Indonesia’s credit rating outlook to “negative” from “stable”, indicating the rising financial risks the country faces as it ramps up government spending in response to the Covid-19 pandemic. Previously, S&P had raised Indonesia’s debt rating to BBB in May 2019, on a par with ratings awarded by two other major…

Monday Briefing

Economy: The Covid-19 pandemic has worsened the global economy, making investors prefer holding the greenback as a safe haven, and this condition has raised pressures on the emerging market’s currencies, including the Indonesian currency. The value of rupiah continues to depreciate at least since Indonesian President Joko Widodo on 2 March announced that two Indonesians…

Friday Briefing

Economy: A substantial reduction of Indonesia’s official reserve was recorded in end of March when the reserve dropped to US$121.0 billion, lower than USD130.4 billion as of end-February 2020. The position of official reserve assets was equivalent to finance 7.2 months of imports or 7.0 months of imports and servicing government’s external debt, which is…

Monday Briefing

Economy: Moody’s Investors Services assessed that the handling of Covid-19 pandemic in Indonesia was slower than other Southeast Asian countries, although the economic and financial policies are well coordinated. According to Moody’s, Indonesia’s response to the corona virus outbreak is slower compared with several other countries in Southeast Asia. However, government policies to reduce the…

Friday Briefing

Economy: Finance Minister said that the Indonesian economy is expected to grow by 2.3 percent in 2020, but the government has prepared for a worst-case scenario of a contraction of 0.4 percent. The upper end of the forecast is less than half the government’s earlier projection of 5.3 percent GDP growth this year. The scenarios…

Wednesday Briefing

Economy: Central Bureau of Statistics (BPS) recorded Indonesia’s inflation rate at 0.10 percent in March 2020 (month-on-month). The annual inflation was 2.96 percent, which below 3 percent of the 2020 , meaning that the general price level is still manageable. Inflation occurred due to price hikes, including the prices of food, beverage, and tobacco that…