Indonesia to Mitigate Covid-19 Outbreak’s Economic Effects

Economic uncertainty due to the Covid-19 outbreak has led to troubles in global financial markets. Mitigation steps are being taken to curb the effects on the national economy.

KOMPAS/LASTI KURNIA

An employee works in front of monitors at the Indonesia Stock Exchange in Jakarta on Friday (28/2/2020). The Jakarta Composite Index dropped 1.5 percent, 82.99 points, to 5,452.70 at the closing. The index dropped on six consecutive days due to pressures from other stock exchanges amid Covid-19 fears.

JAKARTA, KOMPAS – Investors are leaving the stock market in droves in the wake of the Covid-19 outbreak triggered by the new coronavirus. Apart from Indonesia, a similar trend is occurring globally. The government, the central bank and the Financial Services Authority (OJK) have taken several mitigation steps to curb the effects of Covid-19 on the national economy.

Bank Indonesia (BI) Governor Perry Warjiyo said in his office in Jakarta on Friday (28/2/2020) that uncertainties due to Covid-19 had caused global financial markets to suffer. Foreign investors tend to “play safely” and withdraw their capital from portfolio investments, including in Indonesia.