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Indonesia leans on SOEs


18 Dec 2020
State-owned enterprises have emerged as a critical agent for Indonesia’s government to spur economic growth during the pandemic. Their importance is only likely to rise in the future, writes Rashmi Kumar.
Few economists will forget the turmoil of 2020, as much as they might like to. The coronavirus has led to economic contraction in countries across the world. Indonesia is now exception. The country’s GDP stood at negative 5.3% in the second quarter of 2020, marking its first economic contraction in more than 20 years.
Naturally, the government has taken a host of measures to ramp up growth. It has unleashed a combination of fiscal and monetary measures to offer immediate support to the economy, while also thinking of longer term opportunities through a new Omnibus Law and signing a landmark free trade agreement with Asia Pacific countries. ....

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