Indonesia Turning Point Economics. The Minister of Finance, Sri Mulyani Indrawati, said that the Indonesian economy in the third quarter of 2020 grew -3.49% year on year (yoy). This growth is consider to be better than the second quarter of 2020 which grew -5.32%. According to Sri Mulyani, this better third quarter growth.
As well as it was shown by the process of economic improvement or a turning point of national economic activity. From the expenditure or demand side, household consumption also shows an improving trend in the third quarter of 2020. In the previous quarter, household consumption experience a negative growth of 5.5%.
But it has experience an upward trend of -4.0% in the third quarter. This is support by government spending in the context of social protection which has increase very sharply, namely 9.8% yoy, explain Sri Mulyani in an online press conference, Thursday (5/11). However, the minister said.
The consumption of the upper middle class was still limit due to the unfinish condition of Covid-19. So that the character of household consumption from the upper middle class is dominate by goods and services that are sensitive to mobility so they become restrain. Therefore, the government continues.
To make efforts in handling Covid-19 from various indicators such as efforts to find a vaccine so that it will be able to restore the trend of household consumption, especially in the upper middle class. So that improvements are expect and believe to occur in the fourth quarter and beyond, conclude Sri Mulyani.