14 June 2022 (closed)
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On Thursday 5 November 2020 Indonesia’s Statistical Agency (Badan Pusat Statistik, BPS) announced that Indonesia’s gross domestic product (GDP) contracted 3.49 percent year-on-year (y/y) in the third quarter of 2020. This pace of economic contraction in Q3-2020 was slightly more severe than we had predicted. Indonesia Investments had its outlook for Indonesia’s Q3-2020 economic growth at the range of -3.0 to -2.5 percent (y/y).
It also implies that Indonesia is now officially in an economic recession as the nation experienced two consecutive quarters of negative growth (Q2-2020 and Q3-2020). As is widely known, the self-imposed social and business restrictions in Indonesia (and around the globe), which aim at preventing the further spread of COVID-19 in society, have been causing serious damage to the Indonesian (and global) economy.
As expected, Indonesia’s economic contraction in Q3-2020 was not as severe as the one we saw in the preceding quarter (-5.32 percent y/y). Main reason is that the social and business restrictions were tightest in Q2-2020 (in Indonesia and abroad), thereby seriously interrupting economic activity that quarter.
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