Recession Risk Looming for Indonesia amidst COVID-19 Crisis: Ministry of Finance

Following 2.97% year-over-year (YoY) economic growth in the January to March quarter this year, Indonesia’s Finance Minister, Sri Mulyani Indrawati, expressed her views at an online briefing, regarding a projected 3.1% YoY decline in the current April-June 2020 quarter.

Citing COVID-19 as the main cause for these projections, Indrawati noted that the partial lockdowns and social distancing requirements had contributed to the expectations, adding that this very weak growth would make the situation challenging. The expected decline in economic growth in the current quarter would mark the first economic contraction since 1999.

As economic activity gradually resumes across Indones...