Economic Stimulus Exit Strategy

This article may seem awkward. It may be too early to discuss this subject, but it will be too late if we don\'t prepare now. What I\'m talking about here is an exit strategy from the economic stimulus that has been implemented to support the economy. We know that the economic crisis triggered by the Covid-19 pandemic has forced governments and central banks around the world to launch stimulus policies. Do whatever it takes to save lives and the economy! Perhaps that is the theme of the economic policy in the world today.

In Indonesia, the economic stimulus introduced to support the National Economic Recovery (PEN) program caused an increased in the budget deficit to about 6 percent of gross domestic product (GDP) in 2020. Bank Indonesia (BI) has lowered the interest rate and minimum reserve requirement (GWM), as well as offered a burden sharing program with the government, while the Financial Services Authority (OJK) has issued a debt payment relaxation program. In the United States (US), Singapore and Australia, budget deficits have even increased to 10 percent of GDP or more. In some countries, the focus is on health, social protection and assistance to micro, small and medium scale enterprises (MSMEs).