Indonesian President Expects Deeper Contraction in Gross Domestic Product for 3Q 2020

Indonesia is anticipated to experience an economic contraction of over 3.0% year-on-year (YoY) in the July-September 2020 quarter (3Q 2020) according to President Joko Widodo (Jokowi). This expectation is worse than the Finance Minister’s previous gross domestic product (GDP) estimate of 1.0-2.9% YoY for 3Q 2020.

The President estimated that investments may have fallen by over 5.0% YoY in the third quarter of 2020, with household consumption forecast to have declined 4.0% YoY.

Jokowi noted that there was an opportunity for Indonesia to witness a rebound in the final quarter of 2020 (October to December), following the extension of the Generalized System of Preferences (GSP) tr...