American Indonesian Chamber of Commerce

AMERICAN INDONESIAN CHAMBER OF COMMERCE

Update #17 June 22, 2020

Indonesia Coronavirus Update #17     June 22, 2020

Number of reported cases:  46,845 (as of June 22) 2500 Deaths 18,735 Recoveries 

 Rupiah to US$ 14,205

Jakarta Stock Exchange Index: 4918

Overview

June 18 brought a new record high of recorded cases as the pandemic spreads to the farthest reaches of Indonesia.   Infections have plateaued in many regions but are rising in East and Central Java, North Sumatra, Maluku, South Kalimantan, Bali, and North Sulawesi.   Cases number are doubling every 10 days, whereas, during the height of the infection in the US and Europe, this occurred sometimes in just days.  11 provinces reported no new COVID-19 cases as of Monday (6/22):  Aceh, Bangka Belitung, Bengkulu, Yogyakarta, Jambi, West Kalimantan, West Sumatera, Lampung, West Papua, West Sulawesi, and East Nusa Tenggara.

Trends in Jakarta and West Java are now moderate and large-scale social restrictions (PSBB) are being relaxed.  Traffic jams have returned to Jakarta for the first time since March. DKI Jakarta Governor, Anies Baswedan suggested that the pandemic situation is under control. As in the US and other countries, authorities are hoping against and preparing for future spikes or second waves.   Some hotels have reopened but many remained shuttered awaiting the confidence of their guests.

Travel

Tourist travel to Indonesia remains closed but foreign diplomatic/health/ business/technical people in essential occupations and national strategic projects can get visas which require PCR testing.  Several reports and Ministry statements suggest Oct 1 is the target date for reopening, however, agents and operators are pushing for a limited reopening prior to that date.  Valid work permit holders (KITAS/KITAP) can still gain entry. Entrees may be subject to a 14-day quarantine at designated hotels.  The US State Department continues its Travel 4 – Do Not Enter Travel Health Advisory- and has begun its phased re-opening of passport processing centers.  Click Here for more information

Trade & Economy

  • Bank Indonesia cut its prime rate 25 basis points to 4.25% to stimulate economic growth.
  • BI’s Governor, Perry Warjiyo, stated that Indonesia’s economic growth in the second quarter of 2020 will be worse than the first quarter of 2.97 percent. This is in line with Indonesian Finance Minister, Sri Mulyani’s recent projection that suggested negative economic growth in the second quarter. Coordinating Minister for Maritime and Investment Affairs, Luhut Pandjaitan, however, suggested that Indonesia’s economic situation is still far better than other developing countries.
  • Indonesian Minister of Trade Agus Suparmanto reopened the export window for medical personal protective equipment and masks now that there is a local surplus. Ministerial Regulation No. 57/2020 allows manufacturers to export surgical and masks, coveralls, surgical gowns and raw material to make face masks, thereby annulling the previous ban that had been imposed to ensure domestic supplies during the pandemic.
  • The Ministry of Finance calculates several million dollars has been saved in annual government budgets by holding domestic and international meetings remotely and would like to maintain the practice in the future. Deputy Minister of Finance, Suahasil Nazara, on Monday said, “You can imagine how much spending can be saved. We would like to ensure that the new culture can be maintained after this.”

 

(sources: International and Indonesia news media, Bali Update (from balidiscovery.com), Reformasi Weekly)