Indonesia’s Unemployment Could Reach Decade High Levels as Second Quarter GDP Outlook Worsens

Indonesia’s Minister of Finance, Sri Mulyani Indrawati, now expects gross domestic product (GDP) estimates for the quarter ended June 2020 to contract 3.8% compared to the previous estimate of a 3.1% decline.

Indonesia’s Planning Minister, Suharso Monoarfa, quoted that the significant loss in working hours between the 30th of March 2020 and the 6th of June 2020 had resulted in a loss of IDR 362 trillion in terms of purchasing power.

Given this, the Planning Minister stated at a parliamentary hearing that up to 5.5 million people could be left unemployed in 2020, resulting in the unemployment rate increasing as high as 8.1%-9.2%, compared to 5.28% in 2019. Monoarfa added...