By: Raditya Rahman) *
The Covid-19 pandemic indeed devastated various sectors, especially in the economic field. Even economic growth in Indonesia during the first quarter of 2020 was only 2.97%. This condition must be changed and Indonesia must revive so that it does not fall into recession. You do this by opening the market, as one of the centers of the people’s economy.
Since the beginning of the Covid-19 pandemic, the economic sector has really been hit. Street vendors experienced a dramatic turnover due to the quiet streets due to the PSBB rules. Not only small entrepreneurs, even high-class entrepreneurs are also forced to lay off employees because of lack of orders. While employees who still survive do not get THR or give up their wages. The amount of unemployment is also worrying, because it can also cause social problems, and do not let poverty rates rise dramatically.
If it continues to be in this condition, then the condition of the Indonesian economy could collapse. Some even predict that there could be an economic crisis such as 1997-1998 because the dollar exchange rate continues to rise. But we must be optimistic and look to the future, and revive the economic sector in various ways.
One way to boost Indonesia’s economic sector is to start the new normal era. So there is no longer an obligation to stay at home and work from home. Markets and shopping centers are reopened, so that the wheels of the economy turn again. Of course the opening must be with a strict protocol, for example there must be a place to wash hands with antiseptic soap, must keep a distance when shopping and waiting in line, and everyone must wear a mask.
Indeed there is now a marketplace and online store but in reality there are still many people who like to shop directly to the market. After all, not everyone is literate in internet technology. If in the market the seller is an old man, most of them hold cellphones just to call and don’t know how to sell online. When the market reopens, they can breathe easily because they get more income.
When the market reopens, it is not only the traders who benefit, but also the parking attendants and entrepreneurs who open shanties around the market. Owners of hair razors, newsstands, coffee shops, and cigarette stalls can also sell again because there are already consumers who come when the market reopens. As a result, the velocity of money reappears and economic growth can rise again, albeit slowly.
However, this condition depends on the readiness of entrepreneurs, especially those managing MSMEs (small and medium-sized businesses) in selling again. One of the obstacles is working capital. Covid-19 pandemic made them have to stop selling for a while and could only spend savings. The fix is to trade with the entrusted sale system, so don’t have to try it first. We must remain optimistic in trading and be thankful that the market has reopened, so that the country’s financial situation can improve again.
The government also helps MSME entrepreneurs to be able to get back up again by providing subsidized loan interest, both for customers in the Bank and BPR, and finance companies. The amount of subsidies is 6 percent in the first 3 months, calculated from the beginning of the Covid-19 pandemic. So entrepreneurs can pay the installments with very light interest. Why should entrepreneurs be helped? Because they are one of the economic drivers in Indonesia.
The first step to revive the Indonesian economy is to reopen markets and other shopping centers, because it is one of the rotating places of the economic wheel. With the opening of the market, entrepreneurs can sell again and we are optimistic that the Indonesian economy can rise again. Entrepreneurs are also given a loan interest subsidy facility, so they lighten the burden of paying installments. Hopefully the Indonesian economy rises in the second, third and fourth quarters of 2020.
) * The author is a contributor of The Jakarta Institute
