IMF: Indonesia’s GDP to Contract as Unemployment Caused by COVID-19 Wreaks Havoc

According to the International Monetary Fund (IMF) Indonesia’s 2020 gross domestic product is expected to decline 0.3% year-over-year (YoY) as indicated in the June 2020 update of the IMF’s World Economic Outlook.

The IMF noted that in countries like Indonesia, with high shares of informal employment, movement restrictions imposed to contain the spread of COVID-19 led to sudden income losses and unemployment for workers.

Data from Indonesia’s Ministry of Manpower reveals that 3.06 million Indonesians had been either laid-off or furloughed as of the 27th of May 2020. The Government of Indonesia is expecting up to 5.5 million job losses in the country for 2020, led by...