Jakarta, CNBC Indonesia– After experiencing a contraction in the second quarter of 2020 by -5.32%, Indonesia’s economy improved as seen in the contraction reduced to -3.49% in the third quarter of 2020 on a year on year (yoy) basis.
In just a few months, Indonesia’s economy began to recover from the effects of the slowdown caused by the Covid-19 pandemic. In fact, other countries are still struggling with this problem amid the uncontrolled transmission of Covid-19.
The Coordinating Minister for Economic Affairs Airlangga Hartarto revealed that the key to a faster economic recovery was government policies that were carried out intensively in the efforts of Handling Covid-19 and National Economic Recovery (PC-PEN). Government intervention in health management has stimulated trust which has subsequently increased community activities.
“Likewise, government intervention through economic recovery programs aimed at restraining the rate of decline in economic performance has succeeded in driving public consumption and private investment,” said Airlangga in a Press Statement regarding Economic Growth, at the Merdeka Palace, Jakarta, Thursday (5/11). ).
In more detail, he explained that the government intervened on the demand side which was supported by the growth in government consumption of 9.76% (yoy).
Meanwhile improvements were also seen on the supply side. There are sectors that skyrocketed after growing minus in the previous quarter, namely: the transportation and warehousing sector grew 24.28% from -29.18% in the previous quarter, the accommodation and food and beverage sector grew 14.79% compared to the previous quarter at -22 position , 21%, the manufacturing industry grew 5.25% from -6.29%, and the trade sector grew 5.68% from -6.71% in the previous quarter.
“In line with the easing of social restriction policies, significant improvements were also experienced by the transportation and warehousing sector, as well as the accommodation and food and beverage (mamin) sector, which previously experienced the deepest contraction, but this quarter experienced the highest inter-quarter growth,” explained the Coordinating Minister for Airlangga. .
Then, indications of improvement are also seen in a number of economic indicators such as the Purchasing Managers Index (PMI), the Consumer Confidence Index (IKK), the retail sales index, and the trade balance surplus.
Indications of this economic recovery can also be seen from the economic growth in the third quarter according to expenditure, which also shows improvement when compared to the second quarter.
Household consumption grew by 4.70% from -6.53% in the second quarter, Gross Fixed Capital Formation (PMTB) grew by 8.45% from -9.71% in the previous quarter, and Government Expenditures were recorded up 16.93 %.
Spatially, he continued, the performance of regional economic growth is still heavily influenced by health factors that cause physical and social restrictions, as well as tourism activities. However, regional economic growth in the third quarter, compared to the second quarter, shows positive figures for all provinces.
Like DKI Jakarta, which grew 8.38% and contributed to the national GDP of 17.66%. East Java Province grew 5.89% with a contribution of 14.73%, South Sulawesi grew 8.18% and contributed 3.33%, and North Sumatra which grew by 3.13% with a contribution of 5.13%.
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