Indonesia Officially in Recession; Q3 Growth Rate at Minus 3.49%

TEMPO.CO, Jakarta - Statistics Indonesia (BPS) recorded the state's economic growth experienced a 3.49-percent contraction in the third quarter of 2020. This brings the country's economy to a recession for two consecutive quarter. In quarter two, Indonesia's economy grew at a rate of -5.32 percent.

"Compared to quarter three of 2019, this year our third quarter economy is still contracted by 3.49 percent," BPS chief Suhariyanto said in a virtual press conference on Thursday, November 5. 

Indonesia's Q3/2020 GDP based on applicable prices stood at Rp3,894 trillion. The GDP on the bases of constant prices was Rp2,720.6 trillion.

On a quarterly basis, Indonesia's Q3 economy experienced a growth contraction of 5.05 percent when compared to Q2.

"There has been a significant improvement in the economy. And this could be a good foothold to step into the fourth quarter of 2020," Suhariyanto said.

Previously, the Institute for Development of Economics and Finance (Indef) executive director Tauhid Ahmad projected that the third quarter economy would grow at a negative 3.09 percent (yoy). "In the third quarter, it is projected that almost all sectors will be negative, except for government consumption," he told Bisnis on November 4.

Also Read: Purchase Weak; Economist Projects Indonesia Still in Recession Next Year

MUHAMMAD HENDARTYO