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Jakarta Post

How COVID-19 impacts Indonesia’s trade

  • Lili Yan Ing

    Jakarta

Jakarta   /   Tue, June 30 2020   /  08:13 am
A container is being unloaded onto trucks to be transported to the ship during the inauguration of the new opening international container export route from the port of Kuala Tanjung in Batubara Regency, North Sumatra, Saturday (28/3). (JP/ Apriadi Gunawan)

Previous crises – whether trade driven, financial or economic – teach us that such predicaments hit the demand side of the economy the hardest. But COVID-19 has shaken the world from both the demand and supply sides at the same time. Prolonged lockdowns and fears about possible second and third waves of the virus have increased economic uncertainty. This will lower supply and demand around the world simultaneously. The WTO predicts that the global merchandise trade will decline by between 13 and 32 percent this year. World economic growth is expected to shrink by 3 percent. Developed economies are expected to experience a contraction of 6.1 percent, and developing economies are expected to grow a mere 1 percent on average in 2020. The economies of Germany, the US and Japan are expected to plummet by 7 percent, 5.9 percent and 5.2 percent respectively...