Coronavirus Epidemic to Block Economic Growth

The novel coronavirus (2019 n-CoV) outbreak, spreading to more than 20 countries, has been affecting almost every aspect of life in Indonesia. The Office of Coordinating Economic Minister’s macroeconomic and finance coordination undersecretary, Iskandar Simorangkir, said that the global uncertainties coming from the epidemic would shape Indonesian economic growth for sure. As a result, he predicted, it could only reach 4.9 percent in the first quarter of 2020 or equal to the increase in the fourth quarter in 2019.

The Finance Minister, Sri Mulyani Indrawati, also stated that the government would keep an eye not only on the 2019 n-CoV outbreak but also on people’s consumption and investment levels. The problem is that the levels tended to slow down in 2019 at 5.04 percent and 4.45 percent, respectively. In 2018, the consumption level was slightly worse, at 5.05 percent, but the investment level was at 6.64 percent. The government must maintain the standard as long as possible since it is the most significant factor of Indonesian economic growth.