Indonesia's economy shrank in the first quarter of more than 20 years, and its recovery is expected to be one of the weakest in Southeast Asia

Lianhe Zaobao reported on August 6 that Indonesia's GDP from April to June decreased by 5.32% year-on-year. This is the first contraction since the Asian financial crisis in 1999, which is worse than the official forecast. If there is another negative growth in the next quarter, it will be regarded as entering an economic recession.

According to the data released by the Indonesian Bureau of Statistics yesterday, Indonesia's GDP from April to June decreased by 5.32% compared with the same period last year. This is the first contraction since the Asian financial crisis in 1999, and it is worse than the official forecast of 4.3%. According to the data of Indonesia's national development planning agency, as many as 3.7 million people have been unemployed this year, and the number of unemployed is expected to increase to 10 million by the end of the year. Enterprises also reduced their investment one after another, and the investment decreased by 8.61% in the second quarter; Exports fell by 11.66% due to the decline in international market demand and commodity prices, while imports decreased by 16.96%.

The Indonesian government has allocated idr695.2 trillion (about S $65 billion) to revitalize the economy and strengthen the anti epidemic work. However, red tape has delayed the release of funds, and the continuous increase of confirmed coronary disease cases may also hinder the economic recovery.

Capital economics, a London economic advisory body, pointed out after the release of economic data: "Indonesian economic activities stalled in the second quarter. Due to the inability to effectively curb the spread of the virus and the lack of sufficient policy support, the recovery of (Indonesian economy) is expected to be one of the slowest in the region."