Indonesian Finance Minister Sri Mulyani Indrawati warned on Tuesday that the economy must struggle to avoid a recession as the recovery remains very fragile.
“Southeast Asia’s largest economy to record stable growth of around 0% in the third quarter would require an extraordinary struggle.”
“Expect a July-September GDP of between -2% and 0%, but keep the 2020 outlook between -1.1% and 0.2%.”
“We’ll see if the trend continues in August, if we can stay in the near 0% zone and if we can continue to keep ourselves from falling into a recession.”
“Expect the country’s budget deficit to be 6.34% of GDP as the government has allocated $ 187 billion to its 2020 budget.”
“Our prospects depend very much on consumption and investment and the government will use our instruments to support the recovery.”
USD / IDR under pressure
The Indonesian rupee is off the highest but remains in the green zone even though the finance minister has warned of the lukewarm economic recovery.
At press time, USD / IDR is down 0.15% to trade at 14650, after hitting a six-day low at 14,597.