ADB President Masatsugu Asakawa at the press conference (Photo: Reuters)
Hanoi (VNA) - The Asian Development Bank (ADB) has said Indonesiamay not be affected severely by the global health emergency caused byCOVID-19 outbreak, thanks to its minimal exposure to the global trade andits wide room to maneuver in monetary policy.
Speaking at a press conference in Jakarta in early March, newly-appointedADB President Masatsugu Asakawa expressed his belief that Indonesiais less likely to experience a strong impact from the global outbreakcompared to other countries in the region, such as Japan or Thailand.
Indonesia is not deeplyintegrated in the global supply chain, so it is still considerablyfortunate compared to other countries, Asakawa said. He added that theIndonesian economy, which is primarily driven by domesticactivity, is an advantage in the current context.
Indonesia isheavily dependent on domestic demand, with householdconsumption growing 4.97 percent year-on-year in the fourth quarterof 2019 to account for more than 50 percent of gross domestic product(GDP).
Asakawa didnot deny, however, that the outbreak would have a negative impact on theIndonesian economy, because it had already dampened the globaltourism industry.
Although hedid not provide a projection of how the outbreak mightaffect Indonesia, Asakawa said he believes that the country still hasample room to maneuver in macroeconomic policy and fiscal expansionto buffer the economy.
The Bank Indonesia onMarch 2 announced five measures to stabilise the financial market and prop upthe rupiah.
The government has alreadylaunched a 10 trillion rupiah fiscal stimulus package to support tourismindustry and boost consumer spending./.
