Indonesia set to open emergency coronavirus hospital on uninhabited island

02 Avril, 2020, 01:40 | Auteur: Auguste Feret
  • Indonesia boosts financial crisis plans to cope with coronavirus

Indonesia has improved its protocol to prevent a financial crisis amid the coronavirus outbreak, its finance minister said on Wednesday as she flagged a worst case scenario of contraction in 2020 GDP growth and the rupiah falling to a historic low.

The government is spending up to 405 trillion rupiah ($24.8 billion) to help the country cope with the pandemic, with at least IDR75 trillion going toward healthcare and IDR110 trillion toward funding Indonesia's social safety net, Ms. Mulyani said, and added that IDR150 trillion will be set aside to help the economy recover.

"Based on assessment, the economic growth will decelerate to 2.3 percent".

The coronavirus outbreak has led the government to add more economic stimulus package and widened the national development budget deficit to 5.07 percent of GDP for three years, starting from this year, according to Indonesian President Joko Widodo.

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He said the current exchange rate level was "adequate". Despite, for example, the new protocol giving room for BI to purchase sovereign bonds directly from the government, she said such a move would be a last resort.

Other provisions include allowing the government to lend to the Indonesia Deposit Insurance Corporation - a government agency that insures bank deposits and saves failing banks - easing rules on BI's short-term liquidity lending and allowing the Financial Services Authority to restructure banks or even merge lenders if needed.

Governor Warjiyo stressed Indonesia would not impose capital controls.



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