Indonesia has entered a recession. Finance Minister Sri Mulyani Indrawati confirmed the dire prediction that occurred during Q3 of 2020.
“The Ministry of Finance, which previously announced the economy in the third quarter shifted from minus 1.1% to positive 0.2%; the latest as of September 2020 was minus 2.9% to minus 1.0%. Negative territory in the Q3 shall continue to the Q4. “But we are trying to get closer to zero,” Sri Mulyani said at the press conference for the September State Budget on Tuesday (22/9).
The following is Sri Mulyani’s recap for the third quarter of 2020:
Household Consumption: Contraction from -3% to -1.5%
Government Consumption: +9.8% to -17%
Investment: -8.5% to -6.6%
Exports: -13.9% to -8.7%
Imports: -26.8% to -16%.
“Overall in 2020, the Ministry of Finance’s projection (for the economy) is between -1.7% to -0.6%,” said Mulyani.
To note, in the first quarter of 2020, the economy was still in positive territory at 2.97%, while the economy in the second quarter of 2020 was minus 5.32%. Two consecutive negative economic quarters (or contraction), confirm that Indonesia has entered a recession.