Indonesia revises down 2020 GDP forecast

[JAKARTA] Indonesia's Finance Minister Sri Mulyani Indrawati said on Friday the government has revised down its forecast for gross domestic product this year to a range of 1.1 per cent contraction to 0.2 per cent growth.

The government's previous 2020 GDP forecast was a range between 0.4 per cent contraction to 2.3 per cent growth, down from 2019's 5 per cent expansion, due to the fallout of the coronavirus pandemic.

Ms Indrawati attributed the revision to weaker-than-expected economic activity in the second quarter.

President Joko Widodo earlier on Friday proposed to parliament a 2021 budget that assumes GDP growth of 4.5 per cent to 5.5 per cent next year. (Reporting by Tabita Diela, Fransiska Nangoy and Gayatri Suroyo Editing by Ed Davies)

REUTERS