President Jokowi must convince investors that his cabinet can control debt and return the economy on the track of around five percent growth.
The bank deposits of regional administration funds hit Rp 170 trillion. It was unfortunate, considering spending is essential to boost economic growth quickly.
Additional liquidity from the central bank stimulus will not ramp up inflation and profoundly weaken rupiah against the US dollar.
Fitch emphasizes Indonesia's BBB rating with a stable outlook. However, several risks may threaten the rating's sustainability.
The gas consumption of Perusahaan Gas Negara has increased by almost six percent in July, indicating the economy has started to recover.
The government revised several regulations for National Economic Recovery programs in Government Regulation No. 43/2020 where one of which stressed that government funds would not be placed in private banks.
The government will distribute salary aids to 13.8 million workers. However, data collection and recipient verification only rely on BP Jamsostek.
Indonesia's economy contracted 5.3 percent in the second quarter of 2020, worse than the market consensus of 4.72 percent.
A broad foreign sell-offs occurred in the stock and bond markets as concerns over the COVID-19 case keeps growing, especially in Jakarta. Meanwhile, economic growth sees a steeper slump in the second quarter of 2020.
The government is facing yet another dilemma. On the one hand, it has to maintain the PSBB relaxation to keep the economy running. Unfortunately, the positivity rate of COVID-19 PCR tests is way above the WHO's safe limits.