Indonesia plans to double the 2021 state budget for the national economic recovery program (PEN) by allocating IDR 699 trillion (US$~50 billion). The budget includes the following allocations: 25% to the health sector, 22% to social services such as food
Sri Mulyani, Finance Minister, announced the state budget’s allocation of IDR 173.3 trillion (US$ ~12.3 billion) to mitigate the Covid-19 pandemic, doubling from the 2020 pandemic mitigation budget of IDR 63.5 trillion. According to official reports, the budget will be
Bank Indonesia (BI) in its latest attempt to spur growth, has cut interest rates by 25 basis points to a record low of 3.5 percent. This was the first interest rate cut this year, and the fifth in the past
The Minister of Finance, Sri Mulyani, announced that the government debt under President Joko Widodo’s administration amounts to IDR 6,075 trillion. Therefore, the ratio in government debt to GDP has reached 38.68%, an increase from 29% in Dec 2019. Representatives
President Jokowi appointed 5 board of directors for the Indonesia Investment Authority (INA), the country’s sovereign wealth fund, namely Ridha DM Wirakusumah (Managing Director of PT Bank Permata Tbk) as CEO, Arief Budiman (ex-Financial Director of Pertamina) as Deputy CEO,
Bank Indonesia (BI) estimates that foreign capital flows of US$19.4 billion is expected, and is partially attributable to the implementation of Omnibus Law on Job Creation and the establishment of the Investment Management Institute. Perry Warjiyo, BI governor, shared that
Covid-19 has caused additional strain on Indonesia’s demographic bonus, with ~71% of the population within productive age (15-64), resulting in a high unemployment rate of 37.6%. Both the demographic bonus and the unemployment rate is expected to grow given current
Bank of Indonesia reported record uptake in digital banking, fuelled by the pandemic and consequently shaping the way people conduct financial transactions in-country. In 2020, the total digital banking transaction volume has reached IDR ~2,775 trillion, with e-money transactions at
Upon announcement of Trump’s second impeachment, the IDR weakened to 14,092 per USD, along with several Asian currencies such as South Korean Won, Philippine Peso, and the Chinese Yuan. Experts estimate that the IDR will strengthen in light of the
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