Government Alters Strategy in Handling Covid-19

KOMPAS/TOTOK WIJAYANTO

Coordinating Economic Minister Airlangga Hartarto leaves the room after giving information to journalists in person and online regarding the government\'s strategy to restore the national economy in Jakarta, Wednesday (5/8/2020). The scenario for national economic recovery will continue until 2021, given that the impact of the Covid-19 endemic is predicted to continue until next year.

Good health care management is the key to economic recovery. Therefore, the main priority set by the government is to suppress Covid-19 transmission.JAKARTA, KOMPAS — The government is fixing its strategy in coping with the pandemic while preventing the Indonesian economy from deeper contraction. The policy priorities are aimed at ensuring public health, reforming health services, creating new jobs and then economic recovery and transformation.

The policy is formulated under the tagline “Healthy Indonesia, Indonesia Works and Indonesia Grows”. There are 13 policy measures related to health management (Healthy Indonesia), 12 policies related to job creation (Indonesia Works), and four policies related to economic recovery (Indonesia Grows).

The Healthy Indonesia Program includes, among others, conducting polymerase chain reaction (PCR) testing and contact tracing on a massive scale , improving quarantine facilities, promoting changes in community behavior, utilization of a single data in the handling of Covid-19 and health, independence of domestic medical devices and medicine, and cooperating with producers and distributors of vaccines.

The programs under the Indonesia Works, among others, include providing loans and interest subsidies to micro, small and medium-scale enterprises (MSMEs), wage subsidies through BP Jamsostek, the provision of loans to informal businesses, social assistance, labor-intensive programs and employment assistance.

Meanwhile, in the Indonesia Grows, the priority is given to the recovery of a number of economic sectors, including the empowerment of maritime economy, promoting trade, investment, tourism and services, increasing revenue through excise, and transformation of tax collection.

KOMPAS/ISMAIL ZAKARIA

Members of various communities such as Lombok Ocean Care, Lombok Care Community, and tourism players together with the West Lombok Tourism Office and other relevant parties work together to clean up the Senggigi area, West Lombok, West Nusa Tenggara, Friday (7/8/2020). Activities were carried out under tight health protocols, not only to strengthen togetherness in the midst of the epidemic but also as a way to lure tourists back to Senggigi.

The chairman of the Committee for Handling of Covid-19 and National Economic Recovery, Erick Thohir, said in Jakarta on Friday that the handling of health would be the key to the economic recovery program.

On Friday, Erick met the Army chief of staff, General Andika Perkasa, who was appointed as the vice chairman of the Committee for the Handling of Covid-19 and National Economic Recovery. According to Erick, the appointment of General Andika was recommended by President Joko “Jokowi” Widodo. The President considered that the handling of Covid-19 required the presence of the TNI (military), Erick said.

Also read: Notes for Recovering the Economy

The presence of the TNI, continued Erick, is needed to ensure public discipline in implementing health protocols.

Until 2022

Various policy measures under the Healthy Indonesia, Working Indonesia and Growing Indonesia will be carried in stages from July 2020 to December 2022.

Previous government policies related to relaxation of large-scale social restrictions (PSBB) were considered appropriate, Erick said, adding that the easing of the social restrictions prevented the Indonesian economy from a deep contraction.

KOMPAS/TOTOK WIJAYANTO

Vera, one of the owners of the Muslim fashion business Shofura, checks the quality of mukena (women’s prayer garb) that just arrived from the tailors at Pasar Minggu, Jakarta, Friday (7/8/2020). Shofura utilizes social media to market its products which, besides domestically, have also reached Australia, Malaysia and Singapore. During this Covid-19 epidemic, sales fell by 30 percent. The selling price ranges from Rp 150,000 to Rp 950,000 for the headscarves and prayer mats.

In the second quarter of 2020, the Indonesian economy shrank 5.32 percent annually, after growing 2.97 percent in the first quarter of the year.

The secretary of the Committee for Handling of Covid-19 and National Economic Recovery, Raden Pardede said it would be unable to fully utilize the economic capacity until the pandemic was resolved and vaccines were produced and distributed.

Also read: Community Solidarity Grows during the Epidemic

Regarding vaccine production, Erick said, the cooperation program would be further increased within the next year. State owned pharmaceutical company PT Bio Farma (Persero is expected to be able to produce 250 million doses of vaccines per year by the end of 2020.

KOMPAS/MEGANDIKA WICAKSONO

Batik workers dry dozens of hand-painted batik cloths in Papringan village, Banyumas, Central Java, Thursday (6/8/2020).

Production and distribution of the Covid-19 vaccines is under the control of the government and cannot be handled by private companies. It is expected that there will be a fair distribution of vaccines so that it will not cause a new social and economic gap.

Indonesia has taken a wrong step when the government prioritized the economy rather than health in the early stages of its Covid-19 handling agenda, he added.

Separately, a senior economist at the Institute for Development of Economics and Finance (Indef), Didik J Rachbini, said that if the pandemic could not be resolved, Indonesia would not be able to avoid the threat of a prolonged recession. Indonesia has taken a wrong step when the government prioritized the economy rather than health in the early stages of its Covid-19 handling agenda, he added.

Meanwhile, a number of local governments are taking steps to restore the economy. The government of Banyuwangi regency, East Java, for example, is trying to maintain the people\'s purchasing power by strengthening food security.

KOMPAS/TOTOK WIJAYANTO

An officer with Profindo Sekuritas Indonesia stock broker pays attention to index movements in Jakarta, Friday (7/8/2020). The Composite Stock Price Index (IHSG) weakened this week, falling 34.38 points or 0.66 percent from the previous day to the 5,143.89 level.

The Central Java provincial government has also prepared several steps, one of which is to strengthen the role of MSMEs. Central Java Governor Ganjar Pranowo had asked regional organizations to help MSMEs by buying their products.

The Yogyakarta provincial government also promises to accelerate the disbursement of its budget and to open more tourist destinations, with strict health protocols, in efforts to restore the economic activities.

. "We want the money to be disbursed quickly. So, the government’s expenditures will increase, "said Yogyakarta Governor Sultan Hamengkubuwono X. (LAS/AGE/DIM/CAS/FRN/DIT/HRS/NCA/NIK/GER/SYA/BRO)