Jakarta: Bank Indonesia (BI) projects lower economic growth in 2020 at 5.0-5.4 percent, downgraded from 5.1-5.5 percent, before accelerating in 2021 to 5.2-5.6 percent.
The central bank has revised down its projection for 2020 due to the potentially muted global economic recovery in light of the recent Covid-19 outbreak, which will impact Indonesia's economy through the tourism, trade and investment channels.
Nonetheless, it will continue to strengthen coordination with the government and other relevant authorities to strengthen the sources, structure and speed of economic growth, while attracting investment through infrastructure projects and implementation of the Omnibus Bill on Job Creation and Taxation.
"It is likely that growth in the first quarter could reach below five percent. We estimate that it could still reach 4.9 percent," BI Governor Perry Warjiyo told a press conference here on Thursday, February 20, 2020.
In 2019, national economic growth was solid at 5.02 percent despite declining from 5.17 percent in 2018.
According to BI, solid domestic demand remains a key driver of economic growth, while exports languish on compressed global demand and sliding commodity prices. Regionally, solid domestic demand is supported by increasing inter-regional trade, such as in Sumatra. In addition, economic growth in Kalimantan and Bali-Nusa Tenggara has been maintained as exports of primary commodities improve.