Monday Briefing

Economy: Following the Covid-19 pandemic, the Economist Intelligence Unit (EIU) has revised its growth forecasts for all countries across the world. The results paint a bleak picture. Across the G20, all but three countries will register a recession this year. The global economy will contract by 2.2%. The global economic picture is looking bleak, with…

Friday Briefing

Economy: Capital worth US$7.9 billion has been flight out from Indonesia’s financial market so far this year – one of the worst capital outflows the country has ever seen – as the Covid-19 pandemic continues to stoke fears in investors’ mind. According to Bank Indonesia (BI), the flow of foreign capital out of Indonesia this…

Wednesday Briefing

Fiscal: The Indonesian government is searching for foreign loans to support the alleviation of Covid-19 pandemic. As the initial stage, the government has got commitment from the Asian Development Bank and the World Bank. The scheme of loans from those two multilateral financial lenders is still in the process of negotiations. On 21 March, the…

Monday Briefing

Economy: The level of Indonesia’s crisis management protocol has been raised to one notch below “crisis”. Finance Minister warned that should COVID-19 pandemic persisted; economic growth could fall to between 0%-2.5%. According to the minister, the baseline scenario was for GDP growth at above 4%, but that if the coronavirus outbreak lasted three to six…

Friday Briefing

Economy: On 18 and 19 March 2020, the Board of Governors of Bank Indonesia (BI) agreed to lower the BI 7-day Reverse Repo Rate by 25 bps to 4,50%, Deposit Facility (DF) rates lowered 25 bps to 3,75% and Lending Facility (LF) rates lowered 25 bps to 5,25%. According to BI, monetary policy remains accommodative…