In combination with several other policy adjustments of Bank Indonesia as well as a less optimistic outlook for Indonesia’s economic growth in 2021, it indicates that the central bank puts on the gloves a bit further to fight the ongoing economic recession.

Over the past 18 months or so, Bank Indonesia cut its key interest rate gradually, yet aggressively, from 6.00 percent to 3.50 percent in a clear effort to boost economic activity across the Archipelago. The COVID-19 crisis in particular has led to a drastic decline in consumption, production, trade, and investment that has dragged down the Indonesian economy and pushed it into a recession (with negative growth – on an annual basis – starting from Q2-2020).


This update consists of 15 pages.

Our updates are only available to subscribers of the Indonesia Investments report. To receive updates on crucial economic, political and social developments, you can request for further subscription details through or +62(0).882.9875.1125 (including WhatsApp).

Look Inside the Update