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.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsADB downgrades Indonesia’s economic prospects as slowdown persists
The ADB previously forecast Indonesia’s economy to shrink 1 percent this year and grow 5.3 percent in 2021, according to its outlook published in September.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
A 'jamu' (herbal medicine) seller crosses a bridge above the Jagorawi toll road in Cibubur, East Jakarta. Residents and
businesses have started to resume activities after the government introduced a restrictions transition policy while still urging the public to follow health protocols. (JP/PJ.Leo)
T
he Asian Development Bank (ADB) has downgraded its projections for Indonesia’s economy this year and in 2021 due to a continued slowdown in economic activity as a result of the continuing coronavirus outbreak.
The COVID-19 pandemic led to a contraction of around 3.5 percent year-on-year (yoy) in gross domestic product (GDP) in the third quarter, taking the country into its first recession since the 1998 Asian financial crisis, after a 5.32 percent contraction in the second quarter, according to data from Statistics Indonesia (BPS).
“GDP forecast in 2020 has been downgraded for Indonesia, Malaysia and the Philippines as COVID-19 containment measures have hampered economic recovery,” ADB country economist for Indonesia Emma Allen said in a virtual briefing on Thursday.
“So in light of these developments with the third quarter outcome and assuming a gradual reopening of the economy in Indonesia throughout this year and next year, real GDP growth is now projected to recover at a slower rate than we anticipated in September, contracting 2.2 percent in 2020 and picking up to 4.5 percent in 2021.”
Read also: Prolonged pandemic could derail Indonesia’s recovery, ADB, economists warn
The ADB previously forecast Indonesia’s economy to shrink 1 percent this year and grow 5.3 percent in 2021, according to its outlook published in September.
The downgraded forecast is worse than the government’s projection of an economic contraction of between 0.6 and 1.7 percent this year and growth of 5 percent in 2021.
