Indonesian FinMin Indrawati: Authorities are prepared for even the worst-case scenario

Indonesian Finance Minister Sri Mulyani Indrawati said on Wednesday, the authorities are prepared for even the worst-case scenario, in light of the coronavirus pandemic.

Additional comments

Indonesia has improved protocol to prevent financial crisis amid covid-19 outbreak.

Financial authorities see gdp growth at 2.3% in 2020, but may see 0.4% contraction under worse scenario.

Household consumption in indonesia seen very week, investment, exports seen plunging.

Expecting 10% drop in govt revenue due to weak tax collection, falling commodity prices.

Indonesia's scenarios for 2020 budget assumptions include avg rupiah exchange rate at 17,500 to 20,000 a dollar.

Indonesia's annual inflation rate assumed in 2020 budget seen at 3.9%-5.1%.

Central bank’s purchase of government bonds as stipulated in new rules will be regulated "very carefully".

New corporate tax rate of 22% effective in 2020-2021, rate to be cut to 20% in 2022.

Indonesia's new regulation includes provision to tax nonresident internet-based companies.

• Indonesia cuts 2020 GDP forecast to 2.3%

USD/IDR reaction

USD/IDR is printing a new five-day high at 16,430, up 0.80% on a  daily basis, as the broad US dollar rebound and Indonesian growth forecast downgrade underpin the spot.