TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Indonesia’s annual GDP set to contract for first time since 1998

The government has revised its gross domestic product (GDP) outlook down to an annual contraction of between 0.6 percent and 1.7 percent.

Adrian Wail Akhlas (The Jakarta Post)
Premium
Jakarta
Wed, September 23, 2020

Share This Article

Change Size

Indonesia’s annual GDP set to contract for first time since 1998 A woman walks past closed stores at Pasar Baru market in Jakarta on April 1. (Antara/Akbar Nugroho Gumay)

I

ndonesia’s annual gross domestic product (GDP) is set to contract for the first time since the 1998 Asian financial crisis as the government struggles to control the COVID-19 pandemic and contain its economic fallout.

Finance Minister Sri Mulyani Indrawati said the government had revised its gross domestic product (GDP) outlook down to an annual contraction of between 0.6 percent and 1.7 percent as the uncertainty surrounding the pandemic had taken a significant toll on consumption and business investment.

The country’s economy shrank by 13.13 percent in 1998 before rebounding to 0.79 percent growth the next year.

“Several indicators of economic activity show that the economic recovery is still at a very early stage and remains very fragile,” Sri Mulyani told reporters during a virtual press conference on Tuesday. “We will continue to use the state budget to minimize the fallout of the pandemic, but it must be coupled with recovery in consumption and investment for the economy to fully recover.”

The rupiah had fallen 0.58 percent to Rp 14,785 against the United States dollar as of 3 p.m. Jakarta time on Tuesday, following the government’s announcement. The Jakarta Composite Index (JCI), a measure of the Indonesia Stock Exchange (IDX), fell 1.31 percent during the trading day.

The government previously expected the economy to shrink by 1.1 percent at worst or grow by 0.2 percent at best, but several indicators, including retail sales, investment and the consumer confidence index, pointed to a slower economic recovery from the second quarter contraction of 5.32 percent. The country's economy grew 5 percent last year.

to Read Full Story

  • Unlimited access to our web and app content
  • e-Post daily digital newspaper
  • No advertisements, no interruptions
  • Privileged access to our events and programs
  • Subscription to our newsletters
or

Purchase access to this article for

We accept

TJP - Visa
TJP - Mastercard
TJP - GoPay

Redirecting you to payment page

Pay per article

Indonesia’s annual GDP set to contract for first time since 1998

Rp 29,000 / article

1
Create your free account
By proceeding, you consent to the revised Terms of Use, and Privacy Policy.
Already have an account?

2
  • Palmerat Barat No. 142-143
  • Central Jakarta
  • DKI Jakarta
  • Indonesia
  • 10270
  • +6283816779933
2
Total Rp 29,000
{

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.