Luhut Pandjaitan, Indonesian Coordinating Minister for Maritime Affairs and Investment  

Indonesia’s economy grew at its slowest pace in 19 years in the first quarter of 2020, as the coronavirus pandemic disrupted the country’s key manufacturing and informal sectors.

While Southeast Asia’s biggest economy is beginning to slowly re-open, all signs point to a challenging recovery, with the government expecting job losses to reach 5.5 million. In June, Bank Indonesia lowered its growth forecast for this year for the second time to 0.9 -1.9 per cent, compared to an initial estimate of 5.3 per cent.

Postponed infrastructure projects continue to weigh heavily on investment growth across the archipelago nation, and there are fears that a ‘second-wave’ of the virus could cause the economy to shrink further.

In response to the crisis, the Indonesian government has allocated Rp 605.2 trillion (US$ 49.3 billion) worth of COVID-19 spending to boost economic growth and strengthen healthcare systems amid the pandemic. It is also bullish about the prospect of an economic recovery beginning in the third quarter of this year, and is looking to boost economic expansion by improving the investment climate.

Much of these initiatives fall under the brief of Luhut Pandjaitan, Indonesian Coordinating Minister for Maritime Affairs and Investment, who will brief Asia House Corporate Members on the latest developments from Jakarta.

As well as discussing the impact of COVID-19 on Indonesia and the government’s policy response to counter the economic downturn, the Minister will also outline how Indonesia is looking to spur investment into the country and play a bigger role in global value chains.

General (Ret.) Luhut Binsar Pandjaitan was previously Coordinating Minister for Political, Legal, and Security Affairs as well as Presidential Chief of Staff to President Joko Widodo. He also served as Minister of Industry and Trade during President Abdurrahman Wahid’s administration and as Indonesian Ambassador to Singapore.

For more information about this briefing, please contact edward.danks@asiahouse.co.uk

SUPPORTED BY THE INDONESIAN EMBASSY TO THE UK