Indonesian FinMin Indrawati: Authorities are prepared for even the worst-case scenario
|Indonesian Finance Minister Sri Mulyani Indrawati said on Wednesday, the authorities are prepared for even the worst-case scenario, in light of the coronavirus pandemic.
Additional comments
Indonesia has improved protocol to prevent financial crisis amid covid-19 outbreak.
Financial authorities see gdp growth at 2.3% in 2020, but may see 0.4% contraction under worse scenario.
Household consumption in indonesia seen very week, investment, exports seen plunging.
Expecting 10% drop in govt revenue due to weak tax collection, falling commodity prices.
Indonesia's scenarios for 2020 budget assumptions include avg rupiah exchange rate at 17,500 to 20,000 a dollar.
Indonesia's annual inflation rate assumed in 2020 budget seen at 3.9%-5.1%.
Central bank’s purchase of government bonds as stipulated in new rules will be regulated "very carefully".
New corporate tax rate of 22% effective in 2020-2021, rate to be cut to 20% in 2022.
Indonesia's new regulation includes provision to tax nonresident internet-based companies.
Indonesia has put in place safeguard to prevent moral hazard as it takes "extraordinary measures" to fight COVID-19.
USD/IDR reaction
USD/IDR is printing a new five-day high at 16,430, up 0.80% on a daily basis, as the broad US dollar rebound and Indonesian growth forecast downgrade underpin the spot.
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