Indonesia finally fell into an economic recession after the Central Statistics Agency (BPS) announced a review of the domestic economy. With this condition, it means that the Indonesian economy has been negative in the last two quarters. Understandably, in the second quarter of 2020, Indonesia’s economy was minus 5.32 percent.
Economic Recession RI
For information, a recession is a condition in which a country’s economy is negative for two or more consecutive quarters. Head of BPS Suhariyanto said the performance of economic growth in the third quarter was inversely proportional to the same period in 2019. At that time, the domestic economy could still grow by 5.02 percent.
“With this position, if we compare the position in the third quarter of 2019, Indonesia’s annual growth position is still contracting by 3.49 percent,” said
Suhariyanto in his presentation on Economic Growth in the third quarter of 2020, Thursday (5/11).
Meanwhile, despite being officially plunged into a recession, Minister of Finance Sri Mulyani Indrawati believes Indonesia has made it through the worst economic phase. In fact, he believes Indonesia’s economic growth is starting to recover from the corona virus infection.
Less Contractions Economic Growth From 5.32 Percent To Minus 3.49 Percent.
“The turning point was seen in the third quarter, which gave us great hopes for the economy to recover. In the third quarter, the worst is over, or the impact of Covid in the second quarter has been passed,” said Ani, her nickname during a virtual press conference, Thursday (5/11). ).
He added that in the future the hope for domestic economic recovery will be more open. This was reflected in better growth from almost all industrial sectors and growth-forming components. In particular, government consumption growth reached 9.8 percent
. Whereas previously it was minus 6.9 percent in the second quarter. Likewise with household consumption of minus 5.5 percent, now minus 4 percent.
“This is supported by government spending in the context of social protection which has increased very sharply,” he explained.
Likewise from each industrial sector, where the highest growth was in the information and communication sector as well as health services. Respectively grew 10.6 percent and 15.3 percent.