The implementation of micro community activity restrictions (PPKM) should be effective. If not, this policy will become a wasted opportunity for economic recovery.
JAKARTA, KOMPAS – The implementation of micro PPKM will run from February 9 to February 22. Micro PPKM involves implementation at neighborhood units (RT) and community units (RW) across regencies and cities, as well as villages and subdistricts. The purpose of this policy is to curb the cur-rent increase in COVID-19 positive cases.
Coordinating Economic Minister Airlangga Hartarto on Monday said micro PPKM will be implemented in Java and Bali islands. These regions represent 66 percent of COVID-19 cases nationally.
[We] hope that micro PPKM can bring down the number of COVID-19 cases and lower the curve.
Accumulatively, the number of COVID-19 cases reached 1,166,079 cases as of February 8. There were an 8,242 additional positive cases on Monday.
“[We] hope that micro PPKM can bring down the number of COVID-19 cases and lower the curve, a major requirement for managing the pandemic and recovering the national economy,” he said in a teleconference at Jakarta.
Activity restrictions include capacity restriction for office, restaurants and houses of worship by up to 50 percent. In addition, shopping mall operational hours are set until 9 PM, while public facilities are closed and cultural and social activities are prohibited temporarily.
Essential activities, which include construction, can operate at 100% capacity with the implementation of strict health protocols and regulation on operational hours, as well as capacity, Airlangga said. The purpose is to maintain a minimum level of economic activity.
“The implementation of health protocols in essential sectors like retail and restaurants is stricter now, so our attention can shift to micro levels, such as residential areas,” He said.
According to the evaluation of phase I and II of PPKM implementation (from January 11 to February 8), mobility dropped significantly in all sectors. Retail, for instance, experienced a drop of 22 percent; food and beverages shops by 3 percent; public facilities by 25 percent, public transportation by 36 percent, and offices by 31 percent. But mobility in residential areas increased by 7 percent.
The Economy
World Bank Country Director for Indonesia and Timor Leste Satu Kahkonen emphasized the importance of controlling COVID-19 spread in enabling national economic recovery. An uncontrolled COVID-19 pandemic will result in wasted opportunity.
One opportunity to accelerate economic recovery is by improving integration with the global supply chain. The configuration of global supply chain has shifted out from China during the pandemic. “Indonesia has the opportunity to attract investment if it can handle the pandemic,” Kahkonen said.
On the other hand, Indonesia needs to safeguard its main sources of economic growth, including the agriculture, forestry and fishery sector.
The Indonesian economy contracted 2.07 percent in 2020. Meanwhile, the agriculture, forestry and fishery sector grew by 1.75 percent. Food crops grew by 3.54 percent, horticulture crops by 4.17 per-cent, and plantation by 1.33 percent.
Indonesian Agricultural Economics Association (Perhepi) chairman Bayu Krisnamurthi said the agriculture sector still grew amid contraction because consumers prioritized spending on food. In addition, the prices of food and plantation crops, particularly palm oil price, have increased globally.
The La Nina phenomenon will still be a challenge this year. The quality of some agricultural products, such as palm oil, paddy, and sugar cane, will deteriorate due to higher moisture content.
“The government must be vigilant because of [La Nina] impacts on some agricultural products, particularly strategic food corps,” Bayu said.
Indonesia Farmers and Fishermen Association (Intani) chairman Guntur Subagja said La Nina will in-crease the intensity of rainfall, causing flooding in the agricultural areas of West and Central Java.