TEMPO.CO, Jakarta - Bank Indonesia Governor Perry Warjiyo said in a video conference on Thursday, July 16, 2020, that Indonesia's national economy is starting to improve as of June 2020. Perry explained that the improvement was due to the relaxation of social restriction policies even though it has yet to reach a normal level previously achieved before the COVID-19 pandemic.
"Several domestic early indicators have shown positive developments that are reflected in retail sales, purchasing manager index, consumer's expectation, and other improving domestic indicators," said Perry on Thursday, July 16, 2020.
He also announced that June's exports on commodities such as steel and iron have also shown increasing demands from China's infrastructure projects. The contraction continues in the national second quarterly despite the economic growths.
The deepest contraction, said Perry, took place in May as it corresponded with the large-scale social restriction (PSBB) that was imposed in several Indonesian regions that eventually reduced economic activities.
The Bank Indonesia governor expresses his optimism that the domestic economy will eventually improve as fiscal measures, economic digitalization, credit and corporation restructuration, and correct COVID-19 health protocols are implemented.
Based on the global, national, and financial monetary development of economic assessment by the Bank Indonesia Board of Governors' meeting on July 15 and 16, 2020, decided to drop the Central Bank's 7-Day Reverse Repo Rate by 25 points to the level of 4 percent.