MSME 4.0
There is a trade-off between maintaining public health or safety and efforts to spur the economy.
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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.
There is a trade-off between maintaining public health or safety and efforts to spur the economy.
We have faced this situation since Indonesia officially announced its first COVID-19 cases and implemented large-scale social restrictions (PSBB). From the beginning, we have placed our mental health and safety as our top priority. Livelihood affairs follow later. The principle: only saving lives will save livelihoods. However, after five months have passed, we cannot close our eyes, this pandemic has actually hit the Indonesian economy. This is evidenced by the decline in economic growth in the first quarter of 2020 to only 2.97 percent (yoy). It was still positive because the influence of the pandemic was not yet big. However, in the second quarter (April-June), yoy economic growth fell 5.32 percent. In the second quarter, the impact of Covid-19 on the Indonesian economy was purely illustrated, considering that the second quarter was the PSBB period.