The pandemic has dealt a major blow to an Indonesian economy that was already in a weakened state. As a result, the government must make an extra effort to save the economy while curbing the spread of Covid-19.
In the short time span of more or less three months, the Covid-19 pandemic has forced the world to adapt. Amid uncertainty, mitigation efforts are needed to ensure the economy continues.
Hyman Minsky, the long-forgotten thinker of crisis, stated bluntly: A recession (crisis) in the capitalist economic system is solely due to excessive speculative behavior.
The World Bank has estimated that the poverty rate will further increase amid the risk of economic recession due to the Covid-19 pandemic.
Several international institutions, such as the Organization for Economic Cooperation and Development, the International Monetary Fund and the World Bank have lowered their forecast on global economic growth.
The World Bank, in the June 2020 edition of its Global Economic Prospects, projected that the Covid-19 pandemic would result in the worst contraction per capita output since 1870 in most countries in the world.
The fight against the Covid-19 pandemic cannot rely solely on logistical strength, and must also rely on the right strategy.
Like the new coronavirus that mutates unexpectedly, the forecast for the world economy is also very diverse. Good and bad news come and go.
The government plans to relax large-scale social restrictions (PSBB) in June.