DAMPAK VIRUS CORONA - JAKARTA. Indonesia has added more economic stimulus budget allocations to reduce the impact of the Covid-19 corona virus pandemic. The additional budget allocation is included in the design of the National Economic Recovery (PEN) program.
As of Thursday (4/6) the total funds allocated to finance PEN reached Rp 589.65 trillion. This budget is exclude of the budget for handling in the health sector Rp 87.55 trillion.
"Health costs are the first priority. We call this the cost of national economic recovery," Febrio Nathan Kacaribu, Head of the Fiscal Policy Agency (BKF), said in a teleconference video on Thursday (4/6).
The budget for economic recovery is divided into two sides: demand side and supply.
The budget on the demand side is intended for programs that can increase public consumption. For example social protection programs targeting low income groups.
While on the supply side, the budget is allocated for programs aimed at reducing unemployment. For example, MSME restructuring funds, tax incentives and state capital participation (PMN) to state-owned enterprises (BUMN). Febrio hopes that this effort can withstand the surge in unemployment due to the economic crisis.
Director of Research Center on Reform of Economics (Core) Piter Abdullah sees this policy can increase the resilience of the community and business world. But he considered, the economic recovery program was not to encourage economic growth but only to curb growth slowdown and restore the economy back to normal.
About the injection of capital into SOEs, Core Economist Yusuf Rendy considered the move only helped SOE finance. But the effect on Indonesia's economic growth was not significant.
Even more important, said Yusuf, the economic recovery program and the allocation of funds were immediately realized so that it would have an impact on the economy.
"If the government successfully carries out a new normal normal transition process nationally and the impact of Covid-19 does not continue until the third quarter of 2020, then we reach the potential for economic growth in the range of 1% -2% this year," Yusuf said.
Economist for the Institute for Development of Economics and Finance (Indef) Riza Pujarama warned that there were still many MSMEs affected by the Covid-19 crisis that did not enter the banking system and therefore did not receive assistance. And this should be a concern.
Therefore, Indef projects that economic growth this year will be around 1.42%, 0.7%, and the most pessimistic - 0.26%. despite an economic recovery program.
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