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World Bank Appreciates Indonesia for Handling the Economic Crisis Due to Covid-19

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The Indonesian government continues to implement various ways to restore the economy affected by the Covid-19 pandemic. The Government’s various efforts have received appreciation from the World Bank for considering Indonesia to be able to coordinate all resources effectively in order to get out of the economic crisis.

The pandemic that has occurred for two years has brought the whole world into crisis, including Indonesia. Apart from the health crisis, there is also an economic crisis. The reason is because people’s purchasing power has decreased because they prioritize basic needs over secondary and tertiary needs.

The government immediately moved quickly in overcoming the economy in order to avoid a recession or a very severe economic crisis Volume 2 as happened in 1998. Various programs have been launched to stabilize the financial condition of the state and society.

Thanks to the various efforts made then there are results. Satu Kahkonen, World Bank Country Director for Indonesia and Timor Leste stated, “In two years, the whole world has the same problem in dealing with the spread of Corona. The Indonesian government has succeeded in coordinating health resources, social assistance, across the country in the face of the pandemic.”

In a sense, the government is considered quite successful in dealing with the impact of Corona, not only in the health sector but also in the economy. Social assistance is provided not only to communities in need but also to Micro, Small and Medium Enterprises (UMKM) entrepreneurs. They deserve help because their business is sluggish due to the impact of the pandemic.

MSMEs receive social assistance in the form of cash of 2.4 million rupiah which is divided into several periods when it is given. It is hoped that this assistance can be used to increase capital so that they can reopen their shops and earn profits. The government is being tested because it also thinks about the fate of MSMEs, because they are the backbone of the country’s economy.

Ninety percent of traders in Indonesia are small and medium level so they are considered the backbone of the country’s economy. MSMEs must be assisted in order to be able to trade smoothly so that the wheels of the economy can run smoothly. The world bank appreciates this action because the social assistance provided is in the form of productive capital so that it does not just run out.

The World Bank also appreciates the Indonesian government for providing assistance to MSMEs, not only in the form of social assistance but also free training. Especially online sales training, because of the fact that there are still traders who are technology savvy. If you are already proficient in selling on social media and marketplaces, your turnover and profits will automatically go up a lot.

In addition, social assistance also has a positive impact on the economy because there is a positive domino effect. If MSMEs are helped, they can open stalls again and someone will buy the goods, so the economy can run again. The wheels of the economy must be re-launched because if it stops altogether, there will be a very severe economic crisis.

The government is also commended for providing assistance not only to communities and traders in Java but also throughout Indonesia. Assistance is also given directly to the account so that it can be used immediately. This is also to prevent the occurrence of extortion by rogue elements.

The government is committed to always helping people who are in trouble. Therefore, the appreciation from the world bank is highly praised because it means they pay attention to Indonesia.

Praise from the world bank shows the government’s fast steps in overcoming the pandemic, especially in the economic field. Indeed, this field needs to be addressed in order to avoid a terrible crisis like the one in 1998. Appreciation from the world bank occurs because the government provides assistance that is right on target and is also fair.

Edi Jatmiko, Author is a contributor to the Press Circle and Cikini Student

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