Figure 2: Collapsing growth and the constrained policy response
A. Economic growth collapsed even before lockdowns were imposed in early April
Growth in GDP at constant prices
  • Year-on-year growth
  • Seasonally adjusted annualised rate
B. Economic contraction looks similar or worse than other emerging markets
Headline Manufacturing PMI (50 = neutral)
  • Brazil
  • India
  • Mexico
  • Philippines
  • Thailand
  • Turkey
  • Vietnam
  • Indonesia
C. Indonesia has one of Asia's smallest COVID-19 fiscal response packages
Fiscal & quasi-fiscal measures, % of GDP
04812162021.1Japan20.8Malaysia13.0Singapore12.3South Korea10.8Australia9.6Thailand6.2India4.8China4.2Indonesia4.1Vietnam3.1Philippines
D. Bank Indonesia has left interest rates elevated compared to others in Asia
Central bank key policy rates, per cent
  • Malaysia
  • Philippines
  • India
  • South Korea
  • Thailand
  • Indonesia
Source: National accounts, IHS Markit, CEIC Data, International Monetary Fund, author’s calculations