Indonesia Finance Minister Sri Mulyani Indrawati said on September 22 in Jakarta that the country’s Gross Domestic Product (GDP) would further contract this year. South-east Asia’s largest economy would likely shrink within a range of 1.7 per cent to 0.6 per cent on an annual basis in 2020, Finance Minister Sri Mulyani Indrawati told a virtual news conference. The previously expected range was 1.1 per cent contraction to 0.2 per cent growth.
The forecast took into account a new third-quarter GDP outlook of a contraction of 2.9 per cent to 1 per cent, from the previous range of 2.1 per cent to flat growth, and potential negative growth in the October-to-December period, she said.
Government consumption is set to be the only component showing positive growth of 0.6% to 4.8% this year as the government accelerates spending, she said. However, “it cannot be done alone, it must be accompanied by a recovery in the private consumption and business sectors,” she added.