Indonesia enters recession as economy shrinks by 3.49%

JAKARTA

Indonesia has officially entered recession as economic growth plunged by 3.49% in the third quarter of this year, authorities said on Thursday.

Despite the contraction, Central Bureau of Statistics said the economy showed improvement from the second quarter, which shrank by 5.32% compared to the same quarter last year due to strict coronavirus measures.

"Economic growth in the third quarter increased by 5.05% compared to the second quarter," Suhariyanto, the head of the bureau, said in a virtual news conference.

He said that among 17 business sectors that contribute to economic growth, at least seven saw positive growth on annual basis, including agriculture, information communications, government administration, educational services, real estate, health services, and water supply.

Gross domestic product fell 3.49% on an annual basis in July-September period, while household spending plunged by 4.04%, according to the bureau.

Exports also contracted by 10.82% in the third quarter, showing improvement from the second quarter which shrank by 11.68%. it added.

The recession is largely due to the coronavirus pandemic which has hit hit consumption and businesses in southeast Asia’s largest economy.

Indonesia has so far recorded 425,796 COVID-19 cases with 14,348 deaths, while 357,142 patients have recovered, according to the Health Ministry.

* Writing by Rhany Chairunissa Rufinaldo from Anadolu Agency's Indonesian-language service in Jakarta.