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Jakarta Post

What recession means for you and the economy

  • Adrian Wail Akhlas

    The Jakarta Post

PREMIUM
Jakarta   /   Wed, October 14, 2020   /  12:23 pm
The Jakarta Post Image
Old normal: Residents shop on the Tanah Abang skybridge in Central Jakarta on Sunday, a day before the Jakarta administration reimposed full large-scale social restrictions (PSBB) for two weeks in response to soaring COVID-19 infection rates.(JP/Seto Wardhana)

The Indonesian economy is set to enter its first recession since the 1998 Asian financial crisis, bringing two decades of economic expansion to an end as the coronavirus pandemic has caused a sharp economic slowdown, throwing millions into poverty and out of jobs. Economists define a recession as contractions in two consecutive quarters, marking a significant decline in economic activity spread across the economy.    This means there are fewer jobs, people are earning and spending less and businesses have stopped expanding or even shut down. Individuals and businesses in tourism, transportation, accommodation and food and beverage may be feeling the greatest pinch as Statistics Indonesia (BPS) data show that they were the worst-performing sectors in the second quarter this year. The transportation and warehouse sectors contracted 30.8 percent from a year ago as...