Investment down as Indonesia fails to capitalize on trade war

Indonesia is failing to capitalize on the supply chain readjustment caused by the heated United States-China trade war, with investment down during this year’s second quarter, resulting in falling economic growth. The country’s gross domestic product (GDP) growth plunged to 5.05 percent year-on-year (yoy), its lowest level since 2017’s second quarter when the economy expanded by 5.01 percent, Statistics Indonesia (BPS) data show. The figure is only a slight decline from the first three months of this year when GDP growth was recorded at 5.07 percent yoy but is a sharp fall compared to the 5.27 percent growth recorded in the same period last year. The Jakarta Composite Index (JCI), the main gauge of the Indonesia Stock Exchange (IDX), fell by 2.59 percent to 6,175.7 on Monday following the release of the data. The rupiah weakened to Rp 14,241 against the greenba...