Economics

Indonesia Eyes Growth Rebound With Exit From Virus Lockdowns

  • Planning minister predicts growth recovery from third quarter
  • Government seeking balance between health, economy: Monoarfa

Customers use social distancing markers at the checkout counter of a convenience store in Jakarta on May 13.

Photographer: Dimas Ardian/Bloomberg
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Indonesia’s move to gradually ease social distancing rules amid a record surge in coronavirus infections is to ensure an early recovery in Southeast Asia’s largest economy, according to a senior minister.

With the government allowing nine major sectors including mining, plantations, construction and industry to operate under a new health protocol, the country may post 0.5%-1% growth in the third quarter, rebounding from an estimated 2%-3% contraction in the preceding three months, National Planning Minister Suharso Monoarfa said. Growth may further accelerate to 3% in the fourth quarter for a full-year expansion of 1%-1.5%, he said.