Jakarta, March 11 -- The Indonesian economy experienced a significant decline due to the impact of the COVID-19 pandemic. Data from the second quarter of 2020 shows a contraction of 5.32 percent (year-on-year) in the Gross Domestic Product (GDP), which is lower than the same period in 2019, at 5.07 percent.

The downturn continued in the third quarter with a contraction of 3.49 percent, placing Indonesia in its first recession since the 1998 Asian Financial Crisis. Contributing sectors to this negative growth include household consumption, investment, and exports.

The COVID-19 pandemic also triggered capital outflows from Indonesia's financial markets, with many foreign investors withdrawing from the bond and equity markets. This situati...