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Jakarta Post

Indonesia undertakes monetary, fiscal measures to fight effects of virus

  • Adrian Wail Akhlas

    The Jakarta Post

PREMIUM
Jakarta   /   Fri, February 21, 2020   /  07:12 am
The Jakarta Post Image
Bank Indonesia Governor Perry Warjiyo waves to journalists after a media briefing at his office in Jakarta in this undated photo.(Antara/Muhammad Adimaja)

Indonesia is planning to roll out monetary easing and fiscal stimulus to cushion the economy from the impact of the Wuhan coronavirus. Bank Indonesia (BI) cut its benchmark interest rate, the seven-day reverse repo rate, by 25 basis points (bps) to 4.75 percent on Thursday after holding the rate in the last three months. BI Governor Perry Warjiyo said given the economic risks posed by the spread of COVID-19, there was a need to maintain economic growth. Finance Minister Sri Mulyani Indrawati said Wednesday the government was planning fiscal stimulus through state budget disbursement into productive spending and early incentives to strengthen the domestic economy amid slowdown risks. “The COVID-19 spread’s impact on the economy will be V-shaped and we forecast global economic growth to reach 3 percent in 2020 from our earlier projection of 3.1 percent,” Perry sa...