Synergy Between Braking and Acceleration
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.
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Enny Sri Hartati
Even before the Covid-19 pandemic, the Indonesian economy was under pressure from a variety of problems, such as sluggish economic growth, deindustrialization, the trade deficit, a volatile exchange rate, and swelling government debts. The complex macroeconomic problems have caused slumps in investment, jobs and purchasing power.
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 at the same time. According to the government’s analogy, the large-scale social restrictions (PSBB) can reduce fiscal burdens and thereby prevent economic collapse. Evidently, Indonesia was still able to grow 2.97 percent in the first quarter of 2020 amid the global economic slowdown. In the second quarter of 2020, many countries fell into recession after experiencing negative growth over two consecutive quarters.