JAKARTA - One of the points from the results of the Bank Indonesia Board of Governors' Meeting explained that the COVID-19 pandemic had affected global and domestic economic growth. Indonesia's economic growth in the first quarter of 2020 was recorded at 2.97% (yoy), slowing compared to the previous quarter's growth of 4.97% (yoy).
The decline came mainly from slowing exports of services, particularly tourism, non-food consumption, and investment, with the most affected sectors occurring in the Trade, Hotel and Restaurant (PHR) sector, manufacturing industry sector, construction sector, and transportation sub-sector.
Meanwhile, the performance of components and sectors related to handling COVID-19 remained good, as reflected in government consumption and household consumption for health, food and education, as well as information and communication sectors, financial services, health services and other services.
The April 2020 data indicates that the slowdown in Indonesia's economic growth continues, as reflected in the decline in the Retail Sales Survey and the Purchasing Manager Index. Bank Indonesia predicts that Indonesia's economic growth in 2020 will decline in line with the impact of COVID-19. In 2021, economic growth is predicted to increase again driven by an improving global economy and the positive impact of policy stimulus taken. (LM)