Economics
Indonesia’s Economy Hit by Virus Domino Effect, Indrawati Says
- Capital outflows twice level during global financial crisis
- Central bank sees room for rate cut if markets stabilize
Sri Mulyani Indrawati
Photographer: Simon Dawson/BloombergThis article is for subscribers only.
Indonesian officials are becoming increasingly worried about the stability of the financial system amid an exodus in capital caused by the Covid-19 pandemic that’s already much larger than flows during the global financial crisis.
“The domino effect of Covid-19 and its threat to financial-system stability has become the main concern,” Finance Minister Sri Mulyani Indrawati told reporters in an online briefing Monday after the nation’s Financial System Stability Committee met to assess the economy. The uncertain economic conditions require strengthening anticipatory steps to mitigate risks to macroeconomic and financial-system stability, she said.