COVID-19: OECD Expects Indonesia’s Economy to Contract by 3.9% if Second Wave Hits

The Organization for Economic Cooperation and Development (OECD) has projected that Indonesia could experience a 3.9% economic decline in 2020 (higher than initially estimated) if the country is hit by a second wave of COVID-19 infections.

According to the OECD, the Indonesian economy would still contract by 2.8% under a baseline scenario, even if the Government of Indonesia manages to avoid a second wave of COVID-19 infections. In a report published on the 10th of June 2020, the OECD stated that Indonesia faces a severe risk of a resurgence of COVID-19 in the second half of 2020 with the corresponding re-imposition of containment measures.

The President of Indonesia, Joko Widodo, pr...