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Jakarta Post

Govt urged to act faster to prevent recession

  • Adrian Wail Akhlas

    Jakarta

Jakarta   /   Thu, August 6 2020   /  01:00 am
President Joko Widodo makes a visit to Bogor Post Office in Bogor, West Java to witness the distribution of cash assistance to local residents on May 13, 2020. (Antara/Arif Firmansyah)

Economists have urged the government to ramp up state spending and control the coronavirus spread to speed up recovery as Indonesia's economy contracts for the first time since 1999. The gross domestic product (GDP), the broadest measure of goods and services produced, shrunk 5.32 percent year-on-year (yoy) in the second quarter, the steepest decline since the first quarter of 1999, Statistics Indonesia (BPS) announced on Wednesday. All components except for net exports fell annually as the country was hit by the COVID-19 pandemic. Household spending, which accounts for more than half of the GDP, fell 5.51 percent yoy in the second quarter, while investment, the second-largest contributor, contracted 8.61 percent. Exports and imports shrank by 11.66 percent and 16.97 percent, respectively, due to slowing global trade, but with imports dropping more than exports, trade had a ...