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Full economic recovery in Indonesia in August 2020: World Bank

A container is lifted from a truck to be placed on a ship at the port of Kuala Tanjung in Batubara Regency, North Sumatra, on March 28. (JP/ Apriadi Gunawan). Sketched by the Pan Pacific Agency.

JAKARTA, Jul 16, 2020, ANTARA. Indonesia’s economy will start to open and recover from the COVID-19 crisis in August this year, the World Bank’s Country Director for Indonesia, Satu Kahkonen, stated on Thursday, ANTARA reported.

“Indonesia’s economy will fully reopen in August (this year),” Kahkonen remarked at the virtual event of the World Bank’s Indonesia Economic Prospects (IEP) July 2020 edition.

It is one of the three assumptions that Kahkonen noted regarding World Bank’s projection for Indonesia’s economic growth this year, with forecasted zero-percent growth.

The World Bank also delivered its assumption of the global economy contracting 5.2 percent in 2020, thereby mirroring the worst recession since the World War II as well as three-folds worse than the 2009 recession.

In her further note, Kahkonen highlighted the World Bank’s assumption of Indonesia not experiencing a second wave of the COVID-19 pandemic, though adding that “if any of these assumptions change, then the forecast will also change.”

The World Bank has forecast the East Asia and Pacific region to experience some sharp decline to half percent in 2020, from nearly six percent in 2019, as most countries impose lockdown measures to control the outbreak.

“Moreover, economic disruptions have been most severe in countries, with larger domestic breakouts and those that rely heavily on a global trade, tourism, commodity exports, and external financing,” Kahkonen added.

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