You can order this report by sending an email to info@indonesia-investments.com or message to +62(0)8.788.410.6944 (incl. On 05 August 2020, Statistics Indonesia (BPS) released Indonesia’s gross domestic product (GDP) data for the second quarter of 2020. View a list of all our monthly reports here. Exports of goods and services fell 11.7% on an annual basis in the second quarter, which was below the first quarter's 0.2% expansion. The agency determined the contraction of the Indonesian economy at 5.32 percent year-on-year (y/y), the weakest GDP result for Indonesia since Q1-1999. However, the latest data now show a much bigger drop (to 2.97 percent y/y in Q1-2020). Household spending fell 5.5% in the second quarter, which contrasted the first quarter's 2.8% expansion. In the case of Indonesia, some analysts in fact still expected to see modest economic growth in Q2-2020, while the majority of analysts expected a contraction. We would not be surprised, however, if the Q2 figure will be around minus 5.0 percent (y/y). 26/08/2020 - Following the introduction of COVID-19 containment measures across the world since March 2020, real gross domestic product (GDP) in the OECD area showed an unprecedented fall, by (minus) 9.8%, in the second quarter of 2020, according to provisional estimates. Update COVID-19 in Indonesia:  307,120 confirmed infections,  11,253 deaths  (5 October 2020), Indonesia Investments Report - September 2020 Edition: Infrastructure in Focus, Jakarta Composite Index (4,958.77)  +32.04  +0.65%, Central Bank BI 7-Day Reverse Repo September 2020 4.00%. Fixed investment was down 8.6% in Q2, contrasting the 1.7% expansion in the previous quarter, as elevated uncertainty caused firms to halt investment plans. Commenting on their outlook, analysts at Nomura comment: “While Q2 is likely to be the bottom in this downturn, the path to recovery remains fragile […]. Adrian Wail Akhlas The Jakarta Post Jakarta / Wed, August 5, 2020 / 12:15 pm . Indonesia’s Q2-2020 GDP data are particularly crucial to understand the impact of the COVID-19 crisis on the Indonesian economy because the restrictions were most harsh in Indonesia in April and May 2020 (both of which fell in Q2) as non-essential businesses had to close in Jakarta and West Java (which together with East Java form the nation’s economic centers), while people were encouraged to stay at home (for example by seriously limiting activities in shopping malls and ordering the closure of recreational areas and activities). Considering - in the case of Indonesia - the economy only started experiencing hiccups from the second week of March 2020, we expected to see a Q1-2020 GDP figure of around 4 percent (y/y). The outcome was quite close to our forecast of minus 5.0 percent (y/y). According to the agency, the Indonesian economy expanded by 2.97 percent year-on-year (y/y) in the first quarter of 2020. GDP records first contraction since Asian financial crisis in Q2, The economy worsened in the second quarter, with GDP contracting 5.3% on an annual basis (Q1: +3.0% year-on-year) due to Covid-19 containment measures. Update COVID-19 in Indonesia:  307,120 confirmed infections,  11,253 deaths  (5 October 2020), Indonesia Investments Report - September 2020 Edition: Infrastructure in Focus, Jakarta Composite Index (4,958.77)  +32.04  +0.65%, Central Bank BI 7-Day Reverse Repo September 2020 4.00%. At its 16–17 September monetary policy meeting, Bank Indonesia (BI) decided to leave the seven-day reverse repo rate at a multi-year low of 4.00%. In depth analyses of the Indonesian economy can be found in our monthly report, Voting possible:  15 April 2020 12:49 - 01 February 2021 00:00, Please sign in or subscribe to comment on this column, Economy of Indonesia Under Pressure: GDP Growth at 2.97% in Q1-2020, Economic Update: Indonesian Policymakers Finally Become Realistic in Terms of 2020 Outlooks, Indonesia Investments' August 2020 Report - In Search of a Vaccine, Economic Growth Update: Outlook for Indonesia and the World Remains Uncertain, Indonesian Economy Under Pressure in Q1, Bad Omen for GDP Growth in Remainder of 2020, IMF Expects the Worst Economic Downturn since the Great Depression, Hope Short-Lived; Indonesia’s Manufacturing Activity Falls Back into Contraction in September, Consumer Price Index; Indonesia Experienced 3rd Consecutive Month of Deflation in September, Ports in Indonesia; Patimban Seaport Soon Ready to Become Indonesia’s Automotive Export Hub, Improving Domestic & International Connectivity via Air Travel; Overview of Airports in Indonesia, Copyright © Van der Schaar Investments B.V. Delft The Netherlands. | Privacy Policy | Cookies Policy | Terms & Conditions | Sitemap | RSS feed, GDP records first contraction since Asian financial crisis in Q2, Indonesia: Inflation rises in September, but remains muted, Indonesia: Manufacturing sector loses steam in September amid renewed restrictions, Indonesia: Central Bank maintains rates for second month running in September, Indonesia: Merchandise exports contract at softer pace in August, Indonesia: Decline in retail sales eases slightly in July but remains marked. Twitter It was the first contraction in the economy since 1999, as public health measures to contain the coronavirus crisis hit the economy. Looking for forecasts related to GDP in Indonesia? WhatsApp). Considering the real impact of the COVID-19 crisis it to be felt by the Indonesian economy in Q2-2020 (as restriction have been intensified while various regional governments imposed large-scale social restrictions, or PSBBs), we expect to see heavily contracting GDP in the second quarter. The outcome was quite close to our forecast of minus 5.0 percent (y/y). The result is well below forecasts, and considering the real impact of the coronavirus crisis (COVID-19) on the Indonesian economy is to occur in the second quarter, we expect to see a deep red number in Q2-2020 (possibly extending into the following quarter). It is this unprecedented nature of the COVID-19 crisis that has made it very difficult for analysts and economists to come up with accurate outlooks for economic growth, causing a wide margin in outlooks. Home > News > As a result, the contribution of the external sector to growth increased. About Public spending fell 6.9% in Q2 (Q1: +3.7% yoy), as the government struggled to execute its fiscal support package due to administrative problems. According to the agency, the Indonesian economy expanded by 2.97 percent year-on-year (y/y) in the first quarter of 2020. These social and business restrictions (locally known as PSBB or Pembatasan Sosial Berskala Besar) therefore have a very negative impact on production, consumption, trade and investment. On 05 August BPS came with Indonesia’s official Q2-2020 GDP growth rate, thereby finally making an end to all uncertainty. Citi had initially predicted a 7.9 per cent contraction. The downturn was broad-based, with private consumption, public spending, fixed investment and exports all contracting. Never miss out on our latest data, analysis and industry events. These data, which were highly anticipated among analysts and policymakers, are crucial to comprehend how – and to what extend – the self-imposed social and business restrictions (made in response to the COVID-19 pandemic) have impacted on the Indonesian economy. Statistics Indonesia (BPS) released its Q1-2020 gross domestic product (GDP) data for Indonesia on Tuesday (5 May 2020). However, considering we are in uncharted waters it is very difficult to set a reliable forecast. Read the full article in our August 2020 report. Starting in Q1-2020 the world has been captivated by the COVID-19 outbreak. The figure is higher than the government’s and economists’ previous estimates, which stood at around 4.72 per cent.