Indonesia’s economy predicted to contract 3.9 pct

In Indonesia (Photo: Xinhua)

Jakarta (VNA) - The Organisation for Economic Cooperation and Development (OECD) has forecast that the Indonesian economy could witness a 3.9 percent contraction this year if it is hit by a second wave of COVID-19, noting that the contraction would be the first since the 1997 financial crisis.

The OECD report highlights the rocky path that lays ahead for Southeast Asia’s biggest economy as the government seeks to spur an economic recovery by reopening the economy this month after more than two months of partial lockdown.

The think-tank projected the economy to shrink 2.8 percent this year if the government manages to avoid a second wave of infections.

In the latest move, the Indonesian Ministry of Industry also planned to adopt measures to protect domestic garment industry.

According to data released on June 14, a total of 38,277 confirmed COVID-19 cases were recorded across the country, including 2,134 fatalities./.