An upper middle-income country before the pandemic

JAKARTA: Indonesia’s first annual economic contraction since the 1998 Asian financial crisis may have a long-term impact on the country, pushing back the government’s efforts to escape from the middle-income trap by 2045, a top government official has warned.

The country’s gross domestic product (GDP) shrank by 2.07% year-on-year (yoy) in 2020 as the Covid-19 pandemic suppressed social and economic activities, Statistics Indonesia (BPS) reported earlier this month.