World News

Indonesia central bank official sees small impact from virus epidemic

JAKARTA (Reuters) – Indonesia’s economy will suffer little impact from a virus outbreak in China, an official of the southeast Asian nation’s central bank said on Tuesday, despite a capital outflow from the bond market and a drop in the number of tourists.

Bank Indonesia (BI) maintains its 2020 outlook for economic growth of 5.1% to 5.5%, said Firman Mochtar, the director of economic and monetary policy at the central bank.

“Based on our preliminary assessment, this one will not affect our recovery path,” he said at an event in the capital, Jakarta. “We’re quite optimistic with the outlook in 2020.”

Some bond market outflows driven by fear of the virus were “short term jitters”, Mochtar said, adding that BI would remain in the market to stabilize any volatility.

(Reporting by Gayatri Suroyo; Writing by Tabita Diela; Editing by Clarence Fernandez)