NAME: IINK RAHMAWANI

NIM: 2318026
CLASS: PBI 4A

TOPIC:
THE CORONA VIRUS IMPACT ON THE ECONOMY IN INDONESIA
The corona virus has impact on the economy in Indonesia, the first impact is decrease
demand for raw materials from overseas. Indonesia often conducts business relation with China,
due to the corona virus that occurs in china causing worsening trading condition. For example,
the decline in demand for raw materials from china such as coal and palm oil will disrupt the
export sector in Indonesia. The second is prohibit to go abroad, the government prohibit its
citizens from going abroad due to the corona virus,since the corona virus broke out, local airlines
have suspended all flight routes to china. Whereas china is a significant source of income for
Vietnam airlines. Meanwhile, Vietnam airlines estimates the number of passengers will drop by
around 2.5 million this year. The decline in the number of passengers caused a decrease of 12
trillion. And the last is decline in finance in Indonesia, quoted from Kompas.com, Indonesian
bank revised the projection of Indonesia’s economic growth in 2020, from 5.0-5.4 % decreased
to 4.2-4.6%. The projection is influenced by the corona virus pandemic case that hit Indonesia.
So, the corona virus has a huge impact on the Indonesian economy.

THE CORONA VIRUS IMPACT ON THE ECONOMY IN INDONESIA

The corona virus has impact on the economy in Indonesia, the first impact is a decrease
in demand for raw materials from overseas. Indonesia often conducts business relation with
China, due to the corona virus that occurs in china cause trading condition to get worse. In
addition, the decline in demand for raw materials from china such as coal and palm oil will
disrupt the export sector in Indonesia. The second is forbidden to go abroad, the government
banned its citizens from going abroad due to the corona virus,since the corona virus broke out,
local airlines have suspended all flight routes to china. Whereas china is a significant source of
income for Vietnames airlines. Meanwhile, Vietnam airlines estimates the number of passengers
will drop by around 2.5 million this year. a decline in the number of passengers caused a
decrease of 12 trillion. And the last is thw financial decline in Indonesia, quoted by
Kompas.com, Indonesian bank revised the projection of it’s economic growth in 2020, from 5.0-
5.4 % decreased to 4.2-4.6%. The projection is influenced by the corona virus pandemic case
that hit Indonesia. Shortly, the corona virus has a huge impact on the Indonesian economy.