Indonesia's economy is picking up speed again

Amidst the coronavirus crisis, a path back to normality has been emerging for Indonesia's economy since the beginning of June. In Jakarta, which, according to official figures, is the focal point of infection in the archipelago, shopping malls as well as restaurants and cafes are open to guests again. Some of the workers are returning from their work-from-home practices to their workplaces. The metro has started operating again, commuter trains have increased the frequency and traffic jams can again be found on the streets. Only the schools are still closed.

Part of the easing in cities and districts is tied to new Covid-19 infection rates. However, they happen against the background of nationwide official record numbers for new infections and deaths (which, according to the WHO, should be much higher). The easing is an expression of the fact that the previous soft lockdown, which has meanwhile culminated in a five-week travel ban in the country, is no longer economically viable because millions of people have lost their jobs, and many more millions of informal workers have had no income. Apart from regional exceptions, there has so far been no corona-related overloading of the health system. 

The government spent the equivalent of US$43 billion on relief efforts through June. This corresponds to more than a quarter of the government spending originally planned for 2020. The Ministry of Finance expects a budget deficit of 6.3 percent of the gross domestic product. 

GTAI is the foreign trade and inward investment agency of the Federal Republic of Germany. The organization advises foreign companies looking to expand their business activities in the German market. It provides information on foreign trade to German companies that seek to enter into foreign markets.