Home Indonesian FinMin Indrawati: Authorities are prepared for even the worst-case scenario
FXStreet News

Indonesian FinMin Indrawati: Authorities are prepared for even the worst-case scenario

Indonesian Finance Minister Sri Mulyani Indrawati said on Wednesday, the authorities are prepared for even the worst-case scenario, in light of the coronavirus pandemic.

Additional comments

Indonesia has improved protocol to prevent financial crisis amid covid-19 outbreak.

Financial authorities see gdp growth at 2.3% in 2020, but may see 0.4% contraction under worse scenario.

Household consumption in indonesia seen very week, investment, exports seen plunging.

Expecting 10% drop in govt revenue due to weak tax collection, falling commodity prices.

Indonesia’s scenarios for 2020 budget assumptions include avg rupiah exchange rate at 17,500 to 20,000 a dollar.

Indonesia’s annual inflation rate assumed in 2020 budget seen at 3.9%-5.1%.

Central bank’s purchase of government bonds as stipulated in new rules will be regulated “very carefully”.

New corporate tax rate of 22% effective in 2020-2021, rate to be cut to 20% in 2022.

Indonesia’s new regulation includes provision to tax nonresident internet-based companies.

  • Indonesia cuts 2020 GDP forecast to 2.3%

USD/IDR reaction

USD/IDR is printing a new five-day high at 16,430, up 0.80% on a  daily basis, as the broad US dollar rebound and Indonesian growth forecast downgrade underpin the spot.

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.