Presently, COVID-19 continues to wreak havoc across the world, claiming tens of thousands of human casualties. The economic costs of the virus are still on-going but certain to be devastating to the global economy. Travel ban, trade restriction, social distancing and lock down are severely hurting businesses and will create loss of jobs. Indonesian economy has shown several damages that the virus has done to the country’s trade and industry, workforce, and financial market sector.
According to United Nations Statistics Division data in 2018, China is home for 28.4 percent global manufacturing in the world which was nearly a third of the global total. Lockdown in China and restriction of trade activity with China have caused global supply chain disruption. Companies / industries in Indonesia that rely heavily on China are hit hard. Further, the pandemic has caused fears to investors’ mind and jolted financial market. As for workforce, COVID-19 has caused employees in Indonesia to be away from offices and factories which triggers to furloughs and layoffs.
This update aims to highlight the various consequences of COVID-19 outbreak to the Indonesian economy focusing on the sectors that have been hit hard, how the Government has responded, and the assessment of economic experts based on publicly available sources as of 1 April 2020.