JAKARTA - The Covid-19 outbreak became a challenge for Indonesia's economic growth. Slowing growth prospects for the global economy will reduce the prospects for Indonesia's goods export growth, although in February 2020 the increase was driven by exports of coal, CPO and some manufactured products. Exports of services, particularly the tourism sector, are also predicted to decline due to hampered inter-country mobility processes in line with efforts to mitigate the risk of expanding COVID-19.
Non-construction investment is predicted to slow down due to the decline in the prospects for exports of goods and services and disruption of the production chain. Bank Indonesia appreciates the Government's fiscal stimulus measures in minimizing the impact of COVID-19, which together with the planned implementation of Regional Head Elections is expected to simultaneously support the prospects for economic growth
"With these developments, Bank Indonesia has revised its forecast for Indonesia's economic growth in 2020 from 5.0%-5.4% to 4.2%-4.6%," explained Perry Warjiyo, Governor of Bank Indonesia in a media briefing today (19/3).
After the end of COVID-19, economic growth in 2021 is predicted to increase to 5.2%-5.6%, partly influenced by the Government's efforts to improve the investment climate through the Bill of Employment and Taxation. Bank Indonesia continues to strengthen coordination with the Government and OJK to closely monitor the dynamics of COVID-19 spread and its impact on Indonesia from time to time. (LM)