Economics

Indonesia Sees Economy Contracting for First Time Since 1998

GDP seen declining 0.6% to 1.7% in 2020: finance minister
Consumption, investments, exports decline to drag on growth

A visitor passes a closed restaurant inside a shopping mall during a partial lockdown due to the coronavirus in West Jakarta, Indonesia, on Monday, Sept. 14, 2020. Jakarta is requiring non-essential industries to have their employees work from home, limit the use of public transportation, as well as shut entertainment sites and places of worship starting Sept. 14.Photographer: Rony Zakaria/Bloomberg

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By Grace Sihombing

September 22, 2020 at 4:13 AM UTC

Updated on

September 22, 2020 at 6:18 AM UTC

This article is for subscribers only.

Indonesia’s economy is set to contract for the first time since the Asian financial crisis more than two decades ago as the country struggles to get virus cases under control.

Gross domestic product is forecast to decline 0.6% to 1.7% this year, Finance Minister Sri Mulyani Indrawati said Tuesday at a briefing in Jakarta. The government previously had estimated the economy could grow 0.2% or shrink by as much as 1.1%.