MACROECONOMIC ANALYSIS SERIES: BI Board of Governor Meeting, November 2020

Indonesia officially fell into recession since the 1998 Asian financial crisis as the economy contracted again in Q3-2020 by -3.49% (y.o.y), albeit at a slower pace than the previous quarter. GoI indeed needs to accelerate the implementation of stimulus packages, in particular to prevent those who have lost their jobs from falling into poverty and to save businesses that are at the brink of bankruptcy, while continuing several containment and mitigation measures of the Covid-19 pandemic in order for the economy to fully rebound from its dismal growth in 2020.  Inflation remains below expectations and without any signs of pricing pressures, indicating a prolonged weak of aggregate demand.

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