Forbes Indonesia Magazine - November 2020

In this issue

With Indonesia recording a decline in GDP during Q3 2020 of 3.49%, the country has for the first time in over 2 decades, entered a technical recession. It’s a position shared with many other countries and reflecting the continuing slowdown in business activity and trade which the responses to the pandemic have induced. After stabilizing in July and August, Bank Indonesia’s latest consumer confidence index recorded a decline of 3.5 points to 83.4 with a negative sentiment being seen in 13 out of 18 cities surveyed following the latest round of PSSB social distancing restrictions implemented in Jakarta. On the positive side, the decline in retail sales has shallowed, inflation registered a small uptick but remains low at 1.44% in October and the PMI rose to 44.91% in Q3, up from 28.55% in Q2, still in negative territory but reflecting a significantly improved outlook in the manufacturing sector.