Bank Indonesia: Indonesia’s to Witness U-Shaped Economic Recovery; Downturn Prolonged due to COVID-19

Bank Indonesia (BI)’s Senior Deputy Governor, Destry Damayanti, stated that Indonesia’s recovery from the global pandemic is anticipated to be slower than previously expected. BI added that the pandemic has taken a greater than expected toll on Indonesia’s economy as the number of cases continue on an upward trajectory, and is not yet expected to have reached its peak.

According to BI, the impact of COVID-19 threatens to cause a strong contraction in the second quarter of 2020 (Q2 2020), with Damayanti stating that the economy could shrink between 4%-4.8% in Q2 2020.

In light of this, BI now expects Indonesia to witness a U-shaped recovery, contrary to BI’s p...