Indonesian Economic Growth in The Third Quarter Of 2020

Indonesian economic growth has still been contracted by 2.03% cumulatively for the first three quarters 2020 compared to last year. However, it was quite a relief that the economy was growing by 5.05% from Q2 to Q3 this year as the Government started to loosen up the Large-Scale-Social Restrictions in August 2020.

Many sectors have been experiencing an economic increase in the quarter to quarter (q-to-q) basis yet still a decrease in the year-on-year (y-o-y) basis, such as mining, oil and gas, car production, motorcycle sales, and cement production. Indonesia  has also entered a deflation of 0.2% from the q-to-q basis, but an inflation of 1.42% from y-on-y basis. From an investment realization standpoint, both foreign and domestic investments  during Q3-2020 accounted for IDR 209 trillion, or an increase of 8.9% (q-to-q) and 1.6% (y-on-y).

The economic growth, by business fields, has also shown a recovery signal this quarter. Some fields which had a negative growth in the previous quarter, have shown a positive growth this quarter. Some sectors, such as transportation and warehousing, accommodation & food and beverage, corporate services and healthcare, have improved significantly. The economic structure in Q3-2020 was still dominated by provinces in Java island, contributing 58.88% to the GDP.  

The economic growth, by business fields, has also shown a recovery signal this quarter. Some fields which had a negative growth in the previous quarter, have shown a positive growth this quarter. Some sectors, such as transportation and warehousing, accommodation & food and beverage, corporate services and healthcare, have improved significantly. The economic structure in Q3-2020 was still dominated by provinces in Java island, contributing 58.88% to the GDP.  

Source: Official Statistics News (5 November 2020), Statistics Indonesia.