Health and Economy Go Hand in Hand

Health and economic aspects should be given similar attention in the handling of Covid-19. The lack of coordination is one of the problems in coping with the pandemic.

ANTARA/SIGID KURNIAWAN

Coordinating Economic Minister Airlangga Hartarto (second right) speaks with National Disaster Mitigation Agency (BNPB) chief Lt. Gen. Doni Monardo (left), State-Owned Enterprises (SOEs) Minister Erick Thohir (second left) and Deputy SOEs Minister Budi Gunadi Sadikin after a meeting with President Joko Widodo on Monday (20/7/2020) at the presidential palace compound in Jakarta. The President has signed a Government Regulation (PP) on the management of COVID-19 and National Economic Recovery that regulates the establishment of the COVID-19 Management and Economic Recovery Committee.

JAKARTA, KOMPAS - The government has emphasized that the recent establishment of the Committee for the Handling of Covid-19 and the National Economic Recovery by President Joko “Jokowi” Widodo was not intended to put the economy as the first priority. The committee was formed to synergize policies in running the economic recovery program and in the handling of Covid-1 9.

"Health remains a priority because with good health, it will be easier to handle the economic problems. So, both receive similar attention, " the secretary of the Cabinet, Pramono Anung Wibowo, told journalists in a virtual press conference held at the Presidential Office in Jakarta on Tuesday.

Also read : Health and Economy under One Control

He said the decision to establish the special committee was made because the President saw that health and economic issues were inseparable in the handling of Covid-19. The government learned from the experiences of other countries in coping with the pandemic.

A number of countries that prioritize health management ultimately faced complex economic problems, which could even lead them to fall into a recession. Therefore, the government is trying to balance the all the efforts in dealing with health and economic problems.

The Committee for the Handling of Covid-19 and National Economic Recovery, which was established under Presidential Regulation No. 82 of 2020 dated July 20, 2020, consists of the Policy Committee, Covid-19 Handling Task Force, and the National Economic Recovery and Transformation Task Force. The establishment of the committee also streamlines the structure of the organization in the handling of Covif-19. As the consequences, teams and task forces established earlier were dissolved and officials involved were returned to related ministries and government agencies.

Also read : Hopes for the Covid-19 Committee

KOMPAS/TOTOK WIJAYANTO

A shopper browses clothing for sale on Saturday (18/7/2020) in Blok B of Tanah Abang Market, Jakarta. Since the market reopened following the easing of the large-scale social restrictions (PSBB), it has yet to see customer numbers return to normal, particularly shoppers who come from outside the nation’s capital.

Research and vaccines

In its first face-to-face meeting in Jakarta on Tuesday (21/7), the newly established committee discussed the government budget for various multi-year programs, such as those related to the development of research and licensing for Covid-19 vaccines.

Coordinating Economic Minister Airlangga Hartarto said the integrated committee was tasked with formulating a monitoring policy for handling Covid-19 and the national economy, including vaccine development, not only for this year but also for the next few years.

According to Airlangga, the handling of Covid-19 and economic recovery requires a medium-term approach. The team will ensure that swab testing is intensified and the isolation of infected patients is increased to stop the spread of the disease. At the same time, the opening of economic activities would also be continued but with the implementation of strict health protocols, while the development of vaccines is under way.

Alsos read : Overcoming the Threat of Economic Recession

Finance Minister Sri Mulyani Indrawati said economic and health policies must go hand in hand. The gradual opening of the economic activities in the Covid-19 green zone – an area considered having lower transmission risks, will be carried out more carefully by considering health aspects. Don\'t let the green zone turn into a red zone due the opening of the economic activities. "Health and economy should under the same control so that both gas and brake pedals can function well,” she said.

The executive director of the Center for Reform on Economics Indonesia, Mohammad Faisal, said that the newly established committee should be able to address the challenges that may come after the implementation in the new normal order.

The opening of economic activities has so far caused an increase in the number of new Covid-1 9 cases.

"The easing of the social restrictions is intended to reduce pressure on the economy, but the number of new Covid-19 cases continues to rise significantly. How does the integrated committee answer this challenge? “Faisal asked.

Also read : New Hopes and Challenges for Indonesia

KOMPAS/RIZA FATHONI

A Transjakarta employee wears a hazmat suit and face shield while holding a placard displaying Jakarta’s Covid-19 figures on Monday (20/7/2020) at the Harmoni Bus Shelter in Central Jakarta. The bus rapid transit (BRT) company is also using "Covid man", a promotional figure that resembles the coronavirus, to remind the public to always obey the health protocols while using public transportation.

The government’s policy in handling Covid-19 and economic recovery is considered as quite good. However, problems arise at its implementation as reflected in the low disbursement of the financial stimulus promised by the government. The realization of the financial stimulus for the economic recovery is still less than 40 percent.

According to Faisal, the effectiveness of the integrated committee relies much on the character of its leader. State-Owned Enterprises (BUMN) Minister Erick Thohir, who was appointed as the chairman of the committee, is expected to be able to break the bureaucratic barriers and sectoral egos that have been disrupting the course of economic recovery. Moreover, economic recovery requires a non-bureaucratic approach.

So far, the lack of coordination between ministries and agencies is considered to be one of the problems in running the program. Therefore, the establishment of the committee is expected to be able to overcome the coordination problem.

Also read : The Impact of Recession on Poverty

The research director of the Center for Reform and Economics (Core) of Indonesia, Piter Abdullah, said that the composition of the members of the Committee for the Handling of Covid-19 and the National Economic Recovery is relatively the same as the current cabinet.

Therefore, the performance and function of the integrated committee should not be the same as the current cabinet.

"The activities of the integrated committee have the risk of being ineffective. If that happens, it will reduce the government\'s credibility, “Piter said.

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

KOMPAS/RIZA FATHONI

The Alliance of Entertainment Employees and Entrepreneurs hold a peaceful protest on Tuesday (21/7/2020) at City Hall in Central Jakarta. The group called on Jakarta Governor Anies Baswedan to reopen night entertainment venues in the city during the second transitional phase of the large-scale social restrictions (PSBB), as well as assistance for employees who had lost their jobs as a result of the epidemic’s impacts on the economy.

In managing the committee, Erick is assisted by SOE Deputy Minister Budi G Sadikin who was appointed as the chairman of the National Economic Recovery Task Force and the head of the National Disaster Management Agency, Doni Munardo, as the chairman of the Covid 19 Handling Task Force.

According to Budi Sadikin, one of the main tasks of the committee is to maintain the economic growth which is projected to suffer a sharp contraction in the second quarter of this year.

We must not be infected with Covid-19, but we also should not be prevented from layoffs

In the first quarter of 2020, the economy only grew 2.97 percent. "We will identify which sectors are the most affected by Covid-19 and what programs should be prioritized to maintain economic growth," he said.

In the handling of health, Doni Monardo said, one of the programs to be encouraged is to increase the swab testing capacity to 50,000 swab tests per day. At present, swab tests totaled only 20,000 tests a day. The number of the swab tests is still too small to reflect the real picture of the virus transmission in the country.

The committee will use new campaign methods in promoting the people’s awareness on the risks associated with Covid-19 so that the people will be more disciplined in implementing the health protocols. "The Covid-19 Task Force remains an inseparable part. We must not be infected with Covid-19, but we also should not be prevented from layoffs, "said Doni.