The recent epidemic of Coronavirus has a ripple effect that might disrupt the global growth recovery, including Indonesia. The outbreak could potentially bring some indirect impacts on Indonesia economy through three channels: financial market, real sector, and the government sector. Headwinds from the outbreak has shocked the financial market due to fears by global investors which trigger capital outflows from emerging economies in the short run, threatening the market liquidity and FX stability. In the real sector, the impacts of the outbreak could take place in terms of the decrease in tourism & trade activities and a potential delay in real investment. In the government sector, lower tax revenue and higher government bonds yield could be expected.

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