Maintain Commitment in Economic Recovery Plan

The government\'s new strategy to prioritize health is deemed as the right decision. It is expected that the government will no longer implement contradictory policies again.

KOMPAS/RIZA FATHONI

A resident uses a cart to distribute social assistance from the Jakarta administration in Palmeriam village, Matraman district, East Jakarta, Monday (27/7/2020). The Jakarta government plans to extend the distribution of social assistance until December.

JAKARTA, KOMPAS - Following the announcement of the 5.32 percent contraction in Indonesia\'s economy in the second quarter of 2020, the government has decided to alter its strategy in the handling of Covid-19 and national economic recovery programs. Under the tagline of “Healthy Indonesia, Indonesia Works and Indonesia Grows” programs, policy priorities are aimed at protecting the public from Covid-19 transmission and reforming health services.

The government must focus on realizing the program. The economic contraction in the second quarter of 2020 was partly caused by contradictory policies in the government’s efforts to break the chain of Covid-19 transmission.

The executive director of the Institute for Development of Economic and Finance (Indef), Enny Sri Hartati, said in Jakarta on Sunday the world had to accept the harsh reality that the economy would not be able to recover until the pandemic was over. Several countries that have relaxed their social restrictions after successfully suppressing the Covid-19 transmission are now tightening their policies again.

If we hope that growth will remain positive, it is only an illusion.

Indonesia also has to accept this reality. In the second quarter of 2020, the Indonesian economy suffered a contraction. The government is trying hard to avoid an economic recession. However, in the current situation, escaping the recession is only an illusion.

"If we hope that growth will remain positive, it is only an illusion. When there is a shock like this pandemic, it is quite natural for the economy to get hit. Even other countries, whose fiscal stimulus far bigger than those provided by Indonesia, have experienced negative growth in their economy. So, this is clearly due to the pandemic," she said.

Also read : Government Alters Strategy in Handling Covid-19

KOMPAS/P RADITYA MAHENDRA YASA

Volunteers fill out aid packages with various forms of basic necessities that will be distributed at Semarang City Hall, Semarang city, Central Java, Tuesday (4/8/2020). The distribution of basic needs aims to ease the burdens of residents affected by this epidemic. The distribution of this assistance was carried out in all urban villages in the city of Semarang.

Enny noted that the government\'s policies in restoring the economy contradicted efforts to suppress the transmission of the coronavirus. Amid the spike of new Covid-19 cases, the government decided to open tourist areas on July 6, 2020, then eased travel restrictions on July 13 2020. The government also failed to reduce people’s mobility during the Idul Adha long break between July 30 and August 2.

As a result, Covid-19 transmission has never been under control. Miscommunication has also caused the public to misunderstand the "new normal" situation as "returning to normal".

"As a result, people began to ignore social restrictions in conducting their daily activities. The risks of Covid-19 are no longer taken seriously, and the number of Covid-19 cases skyrocketed to exceed 100,000 cases," said Enny.

Commitment and firmness

Enny emphasized that future policy should not repeat the contradiction in the handling of health and economic management. Health aspects should remain the top priority if Indonesia wants to avoid a recession even though it will take longer.

"The commitment is good, but its realization has failed. In the future, the policy should no longer be just a gimmick or for the sake of good image. Most importantly, keep the policy on track, "said Enny.

Also read : Reinforcing Fort Against Covid-19

KOMPAS/TOTOK WIJAYANTO

A worker takes out bread that has been oven-baked at Langgeng Sari bread maker in the Bendungan Hilir area, Central Jakarta, Friday (7/8/2020). The breads are marketed in offices, schools and markets for Rp 4,000 each. The Covid-19 epidemic has hit home industry. If before the endemic they were able to make more than 5,000 packs of bread in a day, currently they make only 1,000 packs.

Meanwhile, the chairman of the Association of Indonesian Public Health Experts (IAKMI), Ede Surya Darmawan, is of the opinion that the resumption of economic activities amid the spike of new Covid-19 cases has raised the risks of the emergence of new clusters. Moreover, community compliance in implementing health protocols is still low.

"Are the people disciplined enough in carrying out health protocols? Not yet. Then, are workplaces also disciplined in complying with requirements in the health protocol? I don’t think so. Meanwhile, the control is also not optimal ,“ he said on Saturday.

According to data issued by the Covid-19 Handling Task Force on July 28, 2020, offices had become new clusters of the disease transmission. In Jakarta, offices generated 90 new transmission clusters with 459 cases. The other clusters were found in settlements (283 clusters with 1,178 cases) and in markets (107 clusters with 555 cases).

Also read : Children Vulnerable to Coronavirus Disease

Ede said the resumption of economic activity should not make the handling of Covid-19 more difficult. If the number of the new transmission cases continues to increase, the hospital capacity will not be sufficient. As a result, the death rate can be even greater because there will be delay in treating the patients.

"Strict protection measures should be implemented in economic activities. Penalties that have a deterrent effect are needed to increase the people’s compliance in implanting health protocols, "he said.

Also read : Offices a Source of New Clusters

KOMPAS/TOTOK WIJAYANTO

Mujizah (right) and her daughter, Vera, the owners of the Muslim fashion family business Shofura, check the quality of mukena (women’s prayer grab) that just arrived from the tailor at Pasar Minggu, Jakarta, Friday (7/8/2020). Shofura uses social media to market its products which, besides in the domestic market, have also reached Australia, Malaysia and Singapore. During this Covid-19 epidemic, sales fell by 30 percent.

The chairman of the Committee for Handling of Covid-19 and National Economic Recovery Erick Thohir said that the handling of health was the key to the economic recovery. In order to suppress the Covid-19 transmission, the public campaign on the need to implement health protocols should be further intensified, he said. "Our focus is clear, that is, handle the health first, and the economy will revive," he said.

Various policies in “Healthy Indonesia, Working Indonesia and Growing Indonesia” programs will be introduced gradually. In the first phase, which began in July 2020-2021, the priorities are given on the handling of health and the Covid-19 transmission, the disbursement of social assistance and stimulus to drive the people\'s economy. In the next phase to be carried out within next one to two years, the priorities will be the vaccination and the revival of various economic sectors.

Also read : Pandemic: From Health, Economy, to Politics

"Even though the policies are carried in stages, they are interlinked. There will be an acceleration and brakes but the stimulus will continue, "said Erick.

This year, the government has allocated Rp 695.2 trillion (US$47.37 billion) in extra funds to finance Covid-19 mitigation efforts and the national economic recovery programs. Until the end of last week, only about Rp 6.3 trillion of the Rp 87.55 trillion allocated for health handling were realized, while the realization of the budget for the social assistance program only reached Rp 85.3 trillion of the total of Rp 203.91 trillion. During the same period, the realization of the stimulus funds for micro, small and medium scale enterprises (MSMEs) was also low at only Rp 31.21 trillion of the total of Rp 123.47 trillion. Meanwhile, those disbursed to local governments reached only Rp 7.4 trillion of the total of Rp 106.05 trillion, and those for business incentives reached only Rp. 16.2 trillion of the total of Rp 120.6 trillion.

Finance Minister Sri Mulyani Indrawati said the handling of Covid-19 and economic recovery programs cannot be separated. The health aspect been prioritized and has become an important part of the government’s policy in the resumption of economic activities.