JAKARTA, Sept. 3 — Indonesian Finance Minister Sri Mulyani Indrawati on Wednesday predicted that the country’s economic growth in the third quarter would undergo contraction, reported Xinhua news agency.
“The economic growth would also be still under the neutral growth in the fourth quarter because efforts to recover economic activities are still very weak,” the minister told a working meeting with the House of Representatives.
Public activities had been increasing since May to June in the hope the consumption would recover gradually, she said, adding that the expectation index from June to July was flat.
The minister said the government has set a target of economic growth in 2020 between minus 1.1 per cent and 0.2 per cent.
She pointed out that the assumption that the economy could grow 0.2 per cent was based on the prediction that the economy could recover in the third and fourth quarters.
The national statistics agency recently announced that the Indonesian economy grew by 2.97 per cent year-on-year in the first quarter 2020, and minus 5.32 per cent in the second quarter.