Economic Recession Ends

Due to disruptions caused by the pandemic, the Indonesian economy experienced contraction, with negative growth for four consecutive quarters, from the second quarter of 2020 to the first quarter of 2021.

KOMPAS/SHARON PATRICIA

The Opposition Leaders Economic Forum with the theme "Save the Indonesian Economy in the Middle of the Covid-19 Crisis" at the Auditorium of the National Library of the Republic of Indonesia, Central Jakarta, on Friday (13/3/2020).

For the first time since the Covid-19 pandemic began, the Indonesian economy recorded a positive growth in the second quarter of 2021. The economy grew 7.07 percent year-on-year (yoy) during the period.

Compared to the first quarter of 2021, the economy grew 3.31 percent in the second quarter of 2021. With annual and quarterly growth returning to the positive zone, Indonesia is technically no longer in recession. The 7.07 percent growth, according to Statistics Indonesia (BPS), was the highest since 2004. In the fourth quarter of 2004, Indonesia’s economic growth was recorded at 7.16 percent yoy.