According to the Economist Intelligence Unit, Indonesia’s economy is expected to grow by 3.3% in 2021, following a recession in 2020. A reluctance to enact large-scale public restrictions will allow economic activity to normalise somewhat in 2021 but a slow vaccination drive may well slow down the country’s recovery.

Besides the pandemic, the focus this year will be on expanding manufacturing and the archipelago’s investment footprint via the omnibus laws and the Regional Comprehensive Economic Partnership (RCEP). The previous finance minister of Indonesia recently recounted the numerous measures introduced in 2013 to make Indonesia less fragile. These past indicators of fragility, however, may not be appropriate for 2021.

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