The government’s monetary and fiscal policies are effective in restoring the national economy
By : Bagas Adrian Nathaniel )*
A series of monetary and fiscal policy strategies that have been comprehensively implemented by the Indonesian government are considered to be very effective in restoring the national economy because they truly uphold the principle of mutual cooperation by inviting all elements to work together.
Indeed, the impact of the COVID-19 pandemic on the world economy has been felt, not only for the global economy, but the pandemic has also greatly impacted the national economy, especially in the second quarter of 2020. Even so, it turns out that the national economy is still able to survive and is actually slowly recovering.
Data shows that in the first quarter of 2019 it was 5.07 percent, but when confronted with the COVID-19 pandemic it didn’t immediately destroy economic conditions, instead it still experienced growth even though it fell, namely at 2.97 percent in the first quarter. first of 2020.
This decline occurred not because there was a decline in economic movement in Indonesia, but purely because there was external influence, which was the outbreak of COVID-19 even throughout the country at that time. Then, the Government of the Republic of Indonesia (RI) quickly implemented a policy which turned out to be very effective to, on the one hand, continue to reduce the transmission rate of COVID-19, but on the other hand, in a balanced way, it was able to keep people running their economic activities.
This policy is PPKM, which has proven to have a great influence on the sustainability of national economic activities even though at that time the pandemic was still occurring. With this good policy from the Government of Indonesia, it suddenly made the country’s economic situation much better at the regional to world level.
The data shows that when compared to other countries, Indonesia’s economy is indeed much better. This is because many countries experienced very strong contractions, such as Singapore which contracted by up to 41.2 percent, then countries like the United States also experienced contractions of up to around 10 percent accompanied by the UK which contracted by around 15 percent.
Not a few among economic observers and also international institutions such as the IMF, World Bank to the OECD predict that there will soon be a recession in the world economy because indeed some of the symptoms of a recession have concretely been experienced by many other developed countries.
Even though there has been much pessimism expressed by world economic experts, in fact the synergy shared by all components of Indonesian society has been able to generate optimism, especially for the Government of Indonesia to continue implementing many national economic recovery policies consistently and also helping the cooperation of all party.
So far, the central government has issued various policies related to national economic recovery, all of which are holistically designed. Not only from the central government, but these policies are also supported by the local government (Pemda).
It is undeniable that the regional government has a very strategic role in accelerating and increasing the effectiveness of the national economic recovery. This is because the regional governments themselves really understand the economic structure in their respective regions, starting from the demographics to what the socio-economic conditions are like in their communities. In addition, policies related to the APBD itself can also be directly synergized to help accelerate regional economic recovery so that later it will have an impact on the national economy.
On the other hand, the community as well as business actors and MSMEs are considered to have a very strategic role in efforts to help accelerate Indonesia’s economic recovery. The government itself has provided various kinds of facilities or stimulus in terms of fiscal and monetary.
Many of the policies for fiscal and monetary policy stimulus that have been carried out by the Government deserve to be welcomed very positively by business actors by moving their businesses so that they are even better than before, which will also be able to help accelerate the national economy.
In order to restore the national economy after being confronted by the COVID-19 pandemic and also the issue of global economic recession, the Government of Indonesia implemented a series of fiscal and monetary policies which turned out to be very effective in boosting the country’s economy because they were balanced with extraordinary cooperation by many parties. others ranging from the local government, the community to business actors and MSMEs.
)* The author is a Kawiwara Pustaka Contributor