The economy contracted 1.65 percent yoy (year-on-year) in the first quarter of 2021 compared to 2.14 percent yoy in the previous quarter.
The inflation rate in March 2021 also fell to 0.06 percent , lower than the previous month and the year-ago period.
"Although the inflation rate in March 2021 remained safe, the public's purchasing power has yet to return to normal," head of the BPS Office in Jakarta, Buyung Airlangga, said in a written statement on Friday.
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This has been indicated by the average per capita provincial gross domestic product (PDRB), based on quarterly constant price, which fell to Rp43 million in the first quarter of 2021 from Rp43.4 million in 2019, he informed.
In addition, the proportion of household spending on food, based on the current price, rose to 26.46 percent in the first quarter of 2021 from 24.9 percent in 2019.
In contrast, the proportion of household spending on non-food items fell to 73.54 percent in the first quarter of 2021 from 75.09 percent in 2019.
"On average household spending declined from Rp2.32 million in September, 2019 to Rp2.15 million in March, 2021," Airlangga said.
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The drop in the people's purchasing power was inseparable from low income and productivity levels in several sectors in the first quarter of 2021, he noted. One of the affected sectors was manufacturing, which contracted 0.06 percent, he said.
The sector which contracted the most was accommodation and other services due to public mobility restrictions (PPKM), he added.
"The low purchasing power was also the result of disrupted income sources due to the pandemic. This is evident from the high open unemployment rate and the worsening manpower indicators owing to the pandemic," he said.
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