Update COVID-19 in Indonesia: 130,718 confirmed infections, 5,903 deaths (12 August 2020)
12 August 2020 (closed)
USD/IDR (14,777) +49.01 +0.33%
EUR/IDR (17,326) +24.33 +0.14%
Jakarta Composite Index (5,233.45) +43.29 +0.83%
Based on the annual work report that China's Premier Li Keqiang delivered in the 12th National People’s Congress (NPC) in Bejing, China targets economic growth of 7.5 percent in 2014. This modest but stable growth should ensure sufficient availability of jobs. Keqiang also hinted at government efforts to reduce the level of pollution as well as credit expansion. furthermore, the country's targets for inflation and money supply are also in accordance with predictions. Last year, China's GDP expanded by 7.7 percent.
Economic growth of China - the world's second largest economy - is important for Indonesia because it is Indonesia's largest trading partner (followed by Japan). Therefore, when China's economy expands at a faster pace it will translate into increased demand for Indonesian exports, particularly commodities. However, when China's economic growth slows, then it will curb demand for Indonesian exports.