Coronavirus outbreak will undermine Indonesian economy by 0.29%

Coronavirus outbreak will undermine Indonesian economy by 0.29%

Coordinating Minister for Economic Affairs Airlangga Hartarto at the Mandiri Investment Forum held in Jakarta on Wednesday (Feb 5, 2020). ANTARA/AstridFaidlatulHabibah/sh

The most affected sector is tourism with two million Chinese who were expected to visit Indonesia facing restrictions. The coronavirus outbreak has prompted countries to issue a travel warning and Chinese tourists were barred from entering the countr
Jakarta (ANTARA) - The coronavirus outbreak would undermine Indonesia's economy by some 0.1 to 0.29 percent, with China's economy predicted to slow down, Coordinating Minister for Economic Affairs Airlangga Hartarto has projected.  

"China's economy is predicted to decline one to two percent, and Indonesia (to decline) 0.1 to 0.29 percent," Hartarto said here Wednesday.

One sector that contributed to the slowdown in the economy is the tourism sector as the pandemic has restricted some two million Chinese tourists from visiting Indonesia.

"The most affected sector is tourism with two million Chinese who were expected to visit Indonesia facing restrictions. The coronavirus outbreak has prompted countries to issue a travel warning and Chinese tourists were barred from entering the country," Hartarto said.

The outbreak would also affect the pharmaceutical industry as it has forced China to extend its holiday until mid-February to prevent the disease from spreading.

"Possibly, the pharmaceutical industry will be affected because some components were imported from the country and now they have extended the holiday," he added.

The government will continue to monitor and evaluate the impact of the coronavirus outbreak on Indonesia's economy.

"We will monitor the development and make a biweekly evaluation. Because the value chain has been disrupted and affects economic growth," he said. (INE)

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