Living with a New Normal

KOMPAS/BAHANA PATRIA GUPTA

Muslims observe the Idul Fitri prayer on Sunday at At Tamim Mosque in Wadung Asri village, Waru district, Sidoarjo, East Java. The mosque held the congregational prayer in strict adherence to the Covid-19 emergency health protocol, including maintaining physical distance distance, limiting the number of participants, checking attendees’ body temperatures and enforcing face masks.

Easing large-scale social restrictions (PSBB) must be based on empirical health data and follow World Health Organization (WHO) standards.

Discussion on easing the PSBB has been on-going since mid-May, as the Covid-19 epidemic has increasingly put pressure on people\'s lives. Most businesses and industries are closed, with employees who have been spared from lays offs and unpaid leave now working from home. Students are also studying online.

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The impact, as of April 20, according to data from the Manpower Ministry, was that 2,084,593 employees from 116,370 companies has been furloughed. Among them, 1,304,777 employees from 43,690 companies were furloughed and 241,431 employees from 41,236 companies were laid off. The rest are from the informal sector and micro, small and medium enterprises. Last March, the government allocated additional social assistance for those affected by the pandemic. The assistance, in the form of cash, food or job training was given for three months until June 2020. The government also increased the budget for health care and assistance for the business sector.

Funds are also allocated for handling health care and helping the business sector. The government issued Regulation in lieu of Law (Perppu) No. 1/2020, which has been approved by the House of Representatives (DPR), giving the government leeway to take various steps to overcome the epidemic. The leeway includes allowing the budget deficit to exceed 3 percent and Bank Indonesia buying government bonds in the primary market. The aim is to inject liquidity into the public and business through the banking sector.

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KOMPAS/ERIKA KURNIA

A line of dozens of drivers, street vendors, workers at Depok Terminal to receive lunch assistance on Wednesday (15/4/2020). Assistance is provided by the social organization Aksi Cepat Tanggap (ACT) and the Indonesian Volunteer Society.

Despite obtaining legal protection through the law, the government still has limitations in accessing debt. The limitation lies in the global financial markets, which will be more careful in buying government bonds or state-owned enterprises (BUMN) debt papers when debt continues to increase.

Data shows that economic growth in the first quarter of 2020 stood at 2.97 percent because of the work from home policy, which has been in effect since mid-March. We must prepare for growth to be even lower in the second quarter. A number of entrepreneurs have estimated the economy will start running in the fourth quarter of this year and the first quarter of 2021, provided that there is no second wave of Covid-19 transmission.

We must prepare for growth to be even lower in the second quarter.

Jakarta has shown a decline in new cases of Covid-19 transmission and perhaps PSBB can be relaxed, after the end of June 4, 2020, so that the economy can run again. Nevertheless, the easing of social restrictions must be based on academic studies and empirical data. Health protocols must be prepared properly and it should follow WHO standards.

The public must be convinced of the new normal conditions by maintaining physical distance and personal health in daily activities on all fronts. This is the way to survive the Covid-19 epidemic. The Covid-19 Rapid Response Task Force can take a central role in ensuring that the new normal conditions are carried out consistently.