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Jakarta Post

Lessons from 2008-2009 global recession

  • Winarno Zain
    Winarno Zain

    Commissioner in a publicly listed oil and gas service company

Jakarta   /   Mon, June 4, 2018   /  11:20 am
Lessons from 2008-2009 global recession People walk by the Goldman Sach's New York headquarters on July 18, 2017 in New York City. (Agence France -Presse/Spencer Platt/Getty Images)

It was a global recession unseen since the 1930s: The United States economy was hit by a financial earthquake in 2008, and the impact was felt around the globe. Ten years on, Indonesia is still grappling with the legacy of this crisis, with the Corruption Eradication Commission (KPK) still investigating the case of the Bank Century bailout, the only Indonesian bank that went bankrupt as a result of the crisis.

Many Indonesian professionals also lost millions of dollars they had invested in American banks that they could not recover. During the 2007-2009 crisis in the US, real gross domestic product (GDP) fell at a frightening speed. In the third quarter of 2008, GDP fell by 3.7 percent. Then it dropped by a frightening 8.9 percent in Q4 and then by 5.3 percent in Q1 2009. 

The overall damage to the global economy was estimated at US$4.5 trillion at 2009...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.