Indonesia Enters First Recession in 22 Years; Economy Contracts by 3.49% in 3Q 2020

Indonesia has officially fallen into recession for the first time in 22 years since the 1998 Asian financial crisis, as its economy contracted in the third quarter of 2020 (3Q 2020) in the wake of the COVID-19 pandemic.

According to Statistics Indonesia, locally known as Badan Pusat Statistik (BPS), Indonesia’s gross domestic product (GDP) contracted by 3.49% year-on-year (YoY) in 3Q 2020, following a 5.32% YoY GDP decline in the second quarter of the year (2Q 2020). On a quarterly basis, the Indonesian economy rebounded 5.05% quarter-on-quarter (QoQ) during July to September 2020, compared to the 4.19% QoQ contraction recorded in 2Q 2020, according to BPS.

BPS Head Suhariyan...