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Wednesday, January 20, 2021

Indonesian Economy Enters Recession

Indonesia’s virus-hit economy enters its first recession since the country was devastated by the Asian financial crisis more than 20 years ago.

Indonesia’s virus-hit economy enters its first recession since the country was devastated by the Asian financial crisis more than 20 years ago.

Indonesia’s Central Bureau of Statistics announced that the national economic growth plunged by 3.49% in the third quarter of this year but improved in the second quarter, which went down by 5.32% compared to the same quarter last year due to COVID-19 restrictions.

This year is Indonesia’s first recession since the Asian financial crisis in 1998 which was also had two consecutive quarters of economic contraction.

Finance minister Sri Mulyani Indrawati said a contraction in private consumption and investment had eased in the third quarter, after experiencing a slump in the previous three months.

 “Hopefully we can close the year with growth around or above zero,” said Planning Minister Suharso Monoarfa.

In response to the economic downturn, President Joko Widodo has ordered government ministers to accelerate budget spending for the rest of 2020 and start planning project procurements to expedite spending early in 2021 aside from signing a job law that aims to attract more investment into the country.

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