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Even though there have been signs of recovery, the Indonesian economy still suffered a 2.19 percent contraction in the fourth quarter of 2020.

Oleh ENNY SRI HARTATI
· 1 menit baca
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KOMPAS/TOTOK WIJAYANTO

Enny Sri Hartati

Even though there have been signs of recovery, the Indonesian economy still suffered a 2.19 percent contraction in the fourth quarter of 2020. The main cause of the contraction was a decline in purchasing power, which had contributed to the fall in household spending by 3.61 percent.

Almost all household expenditures were still in decline, except two expenditure groups that recorded positive growth. The first was spending on housing and home appliances, which grew by 0.71 percent. The second was spending on health and education, which grew by 0.64 percent. Ironically, spending on food and beverage, other than restaurants, shrank by 1.39 percent. In fact, in the midst of a pandemic, adequate food intake is needed to increase immunity.

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