BI Slashes Key Rate to All-Time Low

Bank Indonesia (BI) decided to cut the BI 7-day reverse repo rate (BI7DRR) by 25 basis points to 3.5 percent while urging banks to adjust lending rates immediately and spur economic recovery.

Indonesia-Hungary Investment Fund: What Is It?

The Governments of Indonesia and Hungary created an investment fund for infrastructure projects. The initial investment value from each country reaches US$500 million.

Rising Poverty Rate Means Heavier Burden for Government

Around 27.55 people lived below the poverty lines, equivalent to 10.19 percent of the total population as of September 2020, as the COVID-19 pandemic took its toll on the poor. The government needs to allocate larger budgets for social assistance.

Pandemic Relegates Indonesia from Upper Middle-Income Country

Indonesia's economic growth in 2020 will be minus 2.07 percent, meaning that the Gross Domestic Product per capita will be around US$3,911.7. Therefore, Indonesia will no longer be an upper-middle-income country.

Sluggish Corporate Income, Tax Revenue Remains Negative

Tax revenue is still facing tough challenges this year, especially corporate taxes. The COVID-19 pandemic has suppressed business performance, so it takes time to recover tax revenue from this sector.

Trade Incentive: Is It Worth It?

The Trade Minister plans to grant a fiscal incentive for the trade sector. However, it may shrink the state revenue and trigger WTO bans.