Economics

Indonesia Tips Toward Recession as Consumer Spending Dwindles

  • Jakarta’s return to social curbs dimmed consumption outlook
  • Government cut 2020 GDP forecast to 0.6%-1.7% contraction
Shuttered shops in a mall in Jakarta on Sept. 14.Photographer: Rony Zakaria/Bloomberg
Lock
This article is for subscribers only.

Jakarta’s return to stricter social-distancing measures has dashed hopes that consumption will recover soon, tipping Indonesia’s economy closer to a recession this quarter.

The capital reimposed tighter curbsBloomberg Terminal at a time when people’s shopping habits still hadn’t bounced to back to pre-pandemic levels, while surveys show wealthier Indonesians are pessimistic as the country reports record numbers of coronavirus cases every few days.