Moody’s: Indonesia's economic growth could be below 5% in 2020
JAKARTA. Moody's, a credit rating agency from the United States, said Indonesia's economic growth could be below 5% in 2020, lower than the target set by the government.
Anushka Shah, a senior analyst at Moody's, said it was caused by the low demand for Indonesian commodities from China and the coronavirus outbreak earlier this year. "We expect GDP growth to slow down, to below 5% in 2020, since global growth is still not heating up," Shah explained in an official report.
Even so, Moody's considers Indonesia's economic condition to be still quite strong, compared to other countries that have a "Baa" debt rating.
Shah admitted the ratio of Indonesia's tax-to-GDP-ratio was still low at 12.4%, while other countries with the same debt rating have a tax-to-debt-ratio of 27.6%. But the Indonesian government's debt burden, said Shah, was only 30% of its GDP, while other countries' debt burden was 47.3% of their GDPs. (KR/AR)