Finance minister, Sri Mulyani Indrawati sees Indonesian economic growth will depressed in the second quarter of 2020 caused of the heavy COVID-19 impact- Photo by Finance Ministry Office

JAKARTA (TheInsiderStories) — Good morning! Indonesia has no choice to suffered Rp102 trillion (US$7.24 billion) deficit in the first quarter (1Q) of 2019. The deficit’ portion to the Gross Domestic Product (GDP) was 0.63 percent.

The state revenue recorded Rp350.1 trillion, while the spending was Rp452.1 trillion. Indonesia’ macroeconomy basic assumption realization is still on target.

Inflation recorded at 2.48 percent year-on-year (YoY). Rupiah against US Dollar is below the assumption at Rp15,000 and the crude price is lower than the under the estimation $70 a barrel.

But Government’ debt is swelling. As in March, the debt recorded at Rp4,567.31 trillion, or 10 percent increase from the previous year. The debt consists of Rp3,776.12 trillion government securities and Rp791.19 trillion loan from several sources.

At the meantime, manufacturers in China facing trade barriers are deploying an array of moves to try to keep foreign customers, by giving discounts, tapping tax breaks, trimming workforces and, occasionally, shifting production overseas to skirt tariffs. The United States and China trade war has impacted so many people.

March brought some encouraging news for manufacturers. Industrial output rose at its fastest rate since mid-2014 and exports rebounded more than expected, while first-quarter growth was better than expected. Still, some manufacturers who depend on US sales are struggling.

The US demanded all parties stopping oil products from Iran, starting May 1. If not, they will get sanctions. The statement to ban Iranian oil is released after US Dollar withdrawal over the Iran nuclear deal.

There is not much sentiments for the capital market. After the election which significantly caused positive financial market, now the Jakarta Composite Index fell by 1.42 percent to 6,414.74 with Rp56.37 foreign inflows. While Rupiah stayed at 14,073 against the Greenback.

May you have a profitable day!

GDP: Rp1,400 Trillion

Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information About Indonesia