Indonesia revises down 2020 GDP forecast

JAKARTA, Aug 14 (Reuters) - Indonesia’s Finance Minister Sri Mulyani Indrawati said on Friday the government has revised down its forecast for gross domestic product this year to a range of 1.1% contraction to 0.2% growth.

The government’s previous 2020 GDP forecast was a range between 0.4% contraction to 2.3% growth, down from 2019’s 5% expansion, due to the fallout of the coronavirus pandemic.

Indrawati attributed the revision to weaker-than-expected economic activity in the second quarter.

President Joko Widodo earlier on Friday proposed to parliament a 2021 budget that assumes GDP growth of 4.5%-5.5% next year. (Reporting by Tabita Diela, Fransiska Nangoy and Gayatri Suroyo Editing by Ed Davies)