Indonesia: Coronavirus may shave 0.6% points of GDP growth: Sri Mulyani

  • “A drop of 1% in China’s economic growth will result in a drop of 0.3% – 0.6% in Indonesia’s [growth],” Finance Minister Sri Mulyani said during a press briefing in Jakarta on 18 Feb 20.
  • Indonesia’s economic growth rate, 4.97% in 4Q19, was projected to grow 5.3% in 2020. Sri Mulyani’s estimate meant economic growth may slide to 4.7%.
  • “We are vigilant, but China’s government will have countercyclical measures through fiscal and monetary expansion,” said the minister.
  • China is giving tax concessions to companies directly affected by coronavirus disease 2019 (COVID-19), and its central bank set up a special CNH300bn relending fund to prop up the economy amid travel warnings and suspended operations at factories and small businesses.
  • Sri Mulyani said the government had yet to officially revise 2020’s economic growth target of 5.3% in the state budget, as it was still monitoring global economic growth prospects and China’s economic outlook in for 2020.

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