Jakarta’s return to lockdown surprises analysts, hurts economy

Jakarta will require non-essential industries to have employees work from home, limit use of public transportation and shut entertainment sites and places of worship from Sept 14. Hospital capacity in the capital will max out by Sept 17 as coronavirus infections in the metropolitan area surged.

JAKARTA: The unexpected decision to put Indonesia’s capital back into a tougher lockdown has surprised analysts and investors and threatens to prolong the recovery of South-East Asia’s largest economy.

With Jakarta accounting for around 20% of the country’s GDP, the decision could cause the Indonesian economy to contract for a third consecutive quarter, upsetting an earlier expectation for a recovery in the tail end of the year.