Indonesian economy projected to decline 0.09 percent over coronavirus

Indonesian economy projected to decline 0.09 percent over coronavirus

University of Indonesia (UI) economist Fithra Faisal Hastiadi ANTARA/AstridFaidlatulHabibah)

It is large. However, if we compare it with that of Vietnam, Thailand, and Singapore, it will be smaller since their transactions with China are larger than those between Indonesia and China.
Jakarta (ANTARA) - An economist has forecast that the coronovirus outbreak will potentially lower Chinese economic growth by one percent, thereby resulting in a 0.09 percent contraction in the Indonesian economy this year.

Every one percent drop in the Chinese economic growth will reduce the Indonesian economic growth by a minimum of 0.09 percent and a maximum of 0.1 percent to 0.15 percent, Fithra Faisal Hastadi of the University of Indonesia (UI) stated on Friday.

The Chinese economic growth will potentially fall by over one percent. However, the forecast will only be 20 percent correct, so it will most likely drop by one percent.

He noted that the potential drop of 0.09 percent in the Indonesian economic growth owing to the coronavirus outbreak is relatively small as compared to that of other countries.

"It is large. However, if we compare it with that of Vietnam, Thailand, and Singapore, it will be smaller since their transactions with China are larger than those between Indonesia and China," he stated.

This will likely occur since the Indonesian economy is more dependent on the domestic factor. Hence, in the event of any external upheaval, it will have no significant impact on the Indonesian economy.

"For the time being, the external factor has an impact on the Indonesian economy, but it is not as significant as the domestic one," he stated.

Normally, the domestic factor will affect the national economy for seven months and the external factor for two to three months, he remarked.

He believed that the Chinese economy will recover by taking a cue from the SARS case in 2003 that had caused a decline in the Chinese economy, but it was eventually able to record a 14-percent growth. Related news: Covid-19 hampers global economic recovery: BI

Related news: Government planning various measures to protect economic performance


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