Indonesia’s Economic Recovery to be Dampened by the On-Going COVID-19 Pandemic: Finance Minister

Indonesia’s Finance Minister, Sri Mulyani Indrawati, stated that the economy could remain “sluggish” until the second half of 2021, by which time a COVID-19 vaccine is anticipated to be on the market.

Indrawati added that COVID-19 is the key factor anticipated to hold back domestic consumption spending, investments as well as the global economic recovery. According to Indrawati, getting COVID-19 under control, together with structural reforms to attract investments and fiscal support, remain the core determinants of Indonesia’s economic recovery in 2021.

Whilst manufacturing activity has shown some improvement in August 2020, with IHS Markit’s Manufactu...