Indonesia's economy shrank 3.49 percent yoy in Q3 2020: BPS

Indonesia's economy shrank 3.49 percent yoy in Q3 2020: BPS

Head of BPS Suhariyanto

Jakarta (ANTARA) - The Central Statistics Agency (BPS) revealed that the Indonesian economy had contracted 3.49 percent (yoy) in the third quarter of 2020.

Thus, Indonesia officially fell into recession akin to that experienced by various countries battered by the COVID-19 pandemic since it had recorded negative growth for two consecutive quarters, BPS Head Suhariyanto stated at a press conference here on Thursday.

The BPS had earlier also highlighted that the Indonesian economy contracted 5.32 percent yoy in the second quarter of 2020 owing to the COVID-19 pandemic having limited economic activities.

Despite experiencing negative growth, on a quarterly basis (qtq), Indonesia’s economy advanced 5.05 percent qoq in Q3 of 2020, which shows signs of significant recovery.

Meanwhile, on Nov 2, President Joko Widodo (Jokowi) had stated that economic growth in the third quarter of 2020 would lie around -3 percent, better than -5.32 percent recorded in the second quarter of 2020. "Hence, during the third quarter, it may touch slightly over -3 percent, and that is an improving trend, a positive trend. This must be emphasized in the announcement of the BPS, from (minus) 5.32 percent (in the second quarter) to -3 percent," President Jokowi stated while opening a plenary cabinet meeting at the State Palace here on Monday.

The president noted that despite economic contraction in the third quarter of 2020, the recovery was already apparent. Economic growth in the third quarter will improve as compared to the second quarter of 2020 wherein it fell by 5.32 percent.

Hence, Jokowi has urged his staff to boost the realization of budget spending in the fourth quarter of 2020.
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