Indonesia: 2020 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Indonesia
IMF Staff Country Reports, March 2, 2021
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- Indonesia: 2020 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Indonesia
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Bibliographic details
- Published: March 2, 2021
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513570853.002
Key findings and outlook
- Indonesia implemented a "bold and comprehensive policy package" to cushion the impact of the COVID-19 pandemic.
- The economy rebounded in the third quarter of 2020.
- The economic recovery is projected to strengthen in 2021 and 2022.
- Strong policy support and an improving global economy are expected to be the main drivers of the initial recovery.
- Greater mobility and confidence are expected to follow with the planned vaccination program in 2021.
Risks and uncertainty
- The uncertainty surrounding the growth outlook is larger than usual.
- Upside risk: early completion of a widespread vaccination program.
- Downside risk: a protracted pandemic.
- The macro-financial fallout of the pandemic and economic downturn could be larger than expected, and credit conditions could be slow to improve.
Structural outlook and reforms
- Ongoing reforms aimed at promoting investment are expected to help mitigate the scarring effects from the pandemic.
- Reforms are expected to put the economy on a sustained growth path that builds on Indonesia’s favorable demographics.
Subjects and keywords
- Subject: COVID-19, Credit, Fiscal policy, Health, Money, Public debt, Revenue administration
- Keywords: accommodative monetary policy stance, capacity building support, COVID-19, CPI representativeness, CR, Credit, credit growth, development spending, GDP estimate, Global, ISCR, liability positions vis-à-vis nonresident, policy support measure, PPI coverage, short-term debt
Content in this bundle
- 1idnea2021001