Jakarta, CNBC Indonesia – The government, through the Coordinating Ministry for Economic Affairs, saw a spike in the Covid-19 pandemic that occurred in mid-June hampered economic recovery. However, the government is optimistic that the economy can bounce back.
Deputy for Macroeconomic and Financial Coordination at the Coordinating Ministry for the Economy Iskandar Simorangkir said that the existence of stricter restrictions on community activities or Emergency PPKM brought the Indonesian economy into a slump.
Moreover, the reference issued by WHO, the mutation of the corona virus variant is faster than before. The government cannot work alone, it must work together with all levels of society to comply with health protocols.
“That’s why we have to be vigilant about 5M, don’t let us be the least bit vigilant in implementing the 5M protocol,” Iskandar explained in a webinar, Tuesday (6/7/2021).
“Therefore, with the second wave it is necessary to be vigilant, especially in the banking services industry. When the real sector industry starts to move, it has started to ask for working capital, it could be that the risk of working capital that was just given will face problems,” he said again
In addition, the existence of an Emergency PPKM policy, said Iskandar, will have implications for demand, household consumption will be restrained, and investment will grow limited and export performance will be disrupted.
Thus, Iskandar ensures that the flexibility of the APBN will continue to be maintained to respond and adapt to the dynamics of the COVID-19 pandemic.
In the presentation material, the government believes that the synergy of economic and health policies is the key to economic recovery.
As for his presentation, there are several potential reinforcements that the government can do to encourage the consumption side of the social protection allocation for the PEN program of Rp. 157.41 trillion, vaccination and micro PPKM policies and property and automotive stimulus.
The government also maintains spending in the bottom 40% group by accelerating social assistance spending, including implementing the Pre-Employment Card program.
“In the second semester, with the tightening of PPKM, most likely, our economic growth projection will be below the 4.5% to 5.3% forecast,” said Iskandar.
In encouraging the investment side, it is carried out by implementing the Job Creation Law, especially the establishment of the Investment Management Agency (LPI) and the establishment of the Investment Supervisory Board.
And the interest rate is still relatively low, and the Presidential Regulation Number 109/2020 related to the National Strategic Program.
In terms of spending, the government will remain committed to implementing the 2021 PEN program, easing the fiscal deficit above 3% and the BI government’s burden sharing scheme.
Meanwhile, export performance will be driven by the demand side of the recovering Chinese and US economies, the increase in commodity prices for export acceleration facilities in the Job Creation Act.
Furthermore, Iskandar said the economic dynamics of optimism emerged when Covid-19 declined, so that economic growth stretched with fiscal stimulus.
While also continuing to accelerate the Covid-19 vaccination program in the second and third quarters of 2021. So that in the fourth quarter of 2021, the pandemic can be controlled and the economy will be alive again. “The vaccination target is completed in 12 months and 3M and 3T continue,” as quoted by Iskandar’s presentation material.
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Photo: Table (Doc: Coordinating Ministry for the Economy) Table (Doc: Coordinating Ministry for the Economy)- – |
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