Coronavirus takes the biggest toll on Indonesia's economy since the 1998 crisis

Widodo's government has been criticised over handling the coronavirus pandemic ineffectively.

Indonesia on Friday logged its first annual contraction since the 1998 Asian financial crisis, as the coronavirus pandemic slammed Southeast Asia's biggest economy.

Indonesian President Joko Widodo gestures while talking with Malaysian Prime Minister Muhyiddin Yassin during their meeting at the Presidential Palace in Jakarta, Indonesia, February 5, 2021. Courtesy of Laily Rachev/Indonesia's Presidential Palace/Handout via REUTERS THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY. MANDATORY CREDIT. NO RESALES. NO ARCHIVES. (via REUTERS)

The country's gross domestic product fell down 2.07 percent in 2020 from a year earlier, the statistics agency said. Transportation and Tourism are among the hardest-hit sectors.

Friday's data marked Indonesia's first annual economy hit since the regional currency crisis which had forced the resignation of its long-term dictator Suharto in 1998.

"The Covid-19 pandemic has hit the whole world, including Indonesia," said statistics agency chief Suhariyanto, who like many Indonesians goes by one name.

The country has some of the worst virus infection rates in Asia, and President Joko Widodo has been widely criticised over his government's handling of the pandemic.

Suhariyanto said that some indicators, including trade data, showed signs of picking up last month, since the nation of nearly 270 million launched a mass vaccination plan.

"The vaccination program and adherence to health protocols are important keys to an economic recovery," he added.

Several million Indonesians have been laid off as the central bank repeatedly cut interest rates in a bid to spur growth. Governments around the world have been struggling to contain the coronavirus, which has forced the shutdown of vast areas of the global economy.