BI upbeat about 5.5 percent economic growth despite coronavirus threat

BI upbeat about 5.5 percent economic growth despite coronavirus threat

Bank Indonesia Deputy Governor Dody Budi Waluyo (left) presented a souvenir to West Nusa Tenggara Governor H. Zulkieflimansyah, after opening a dialog themed "the use of wakaf to boost regional economy" at the Bank Indonesia Representative Office in West Nusa Tenggara Province on Monday (Feb 10, 2020). ANTARA/Awaludin

The key rests with how fast China will find the virus. However, as what we look at now, all of the Chinese government's policies are very expansive to settle the existing problems.
Mataram, W Nusa Tenggara (ANTARA) - Bank Indonesia (BI) is optimistic that Indonesia will record an economic growth of 5.1-5.5 percent this year despite a new strain of coronavirus that originated in China having spread to several other countries.

"Admittedly, the coronovarius outbreak is a global issue. However, the world believes it will be temporary. After its vaccine is found, the incident is forecast to last for six months," BI Deputy Governor Dody Budi Waluyo stated in Mataram, the capital of West Nusa Tenggara Province, on Monday.

The global economy will likely slow down in the first semester of 2020 and will thereafter improve along with the Chinese government's efforts to handle the impact of the coronavirus.

"The key rests with how fast China will find a way to tackle the virus. However, as what we look at now, all of the Chinese government's policies are very expansive to settle the existing problems," he stated.

He noted that the Indonesian economic growth in 2020 may be higher than that of 2019 that had reached 5.02 percent owing to BI's policy to cut the interest rate since 2019. This year, the policy should begin to have an impact on the national economy.

Moreover, the first phase of the US-China trade agreement has been inked. Both nations are entering the second phase. Thus, optimism has risen that the global economy or trade this year will perform better than that of last year.

If the global trade has improved, it will push the global commodity prices and eventually boost the exporters' income and so will the national income and consumption, he pointed out.

"If exports increase, producers' requirements to manufacture export goods will be higher and national income and investment will increase accordingly," he added. Related news: Economic growth clocked at five percent, IHSG-Rupiah remain positive

Related news: Indonesia's registered economic growth of 5.02 percent in 2019: BPS


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