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Appreciating the Government’s Economic Stimulus Overcoming the Impact of Covid-19

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By: Alfisyah Kumalasari) *

The spread of the Corona Virus or Covid-19 does not only have implications for health, but also has implications for the people’s economy. Deal with these conditions, the Government has spread economic stimulus to Rp405.1 trillion.

Government attention to the realization of the acceleration of global disaster management due to Covid-19 has begun to be apparent. President Jokowi’s response to meeting the daily needs of the people by providing a budget of Rp. 405.1 T. With the implementation of this stimulus, it is hoped that it will be able to help people who are currently in an emergency due to COVID-19.

Government policy is taken following the implementation of physical distancing or large-scale social restrictions (PSBB) in this case the implementation will be even more stringent. Given the potential for the spread of this virus is already so high. The latest data states that the Jakarta death rate has increased to 85, not to mention other areas.

Therefore the implementation of the PSBB will be accompanied by a number of assistance from the government. The budget allocation is also used for several activities. A budget of Rp. 75 trillion specifically for health funds, Rp. 110 trillion for social safety nets (SSN), Rp. 70.1 trillion specifically for tax incentives, along with stimulus for people’s business credit (KUR). This budget, including Rp150 trillion, will be allocated to finance national economic recovery programs.

Jokowi detailed, around Rp. 75 trillion was planned to be used to provide PPE (personal protective equipment), other medical devices, such as rest kits, reagents, ventilators and hand sanitizers. In accordance with standards set by the ministry of health. Includes upgrading to 132 referral hospitals to deal with Corona patients.

In addition, the health budget will also be allocated for medical personnel incentives. Such as specialist doctors, general practitioners, nurses and other medical personnel. Jokowi also added that he would provide death compensation to families of medical personnel up to Rp. 300 million.

The social safety net special fund will be used to channel the Family Hope Program (PKH) to at least 10 million beneficiary families (KPM) whose value of assistance will be increased by 25% within a year. Ie, with details of the initial number of 15.2 million increased to 20 million recipients. With a benefit amount of Rp. 200 thousand for approximately 9 months. This percentage is believed to have risen 33 percent from the previous amount.

Likewise, the Initiative card, which was also raised from an initial value of Rp 10 trillion to Rp 20 trillion, to be able to cover around 5.6 million for informal workers, as well as micro and small businesses. There is also a stimulus for the release of 3-month electricity costs for 24 million electricity customers with a magnitude of 450VA.

While the implementation of discounts of up to 50 percent for 7 million customers for 900VA subsidized power. This also applies to the procurement of basic food logistics support along with basic needs with a nominal value of Rp. 25 trillion. Which will be distributed evenly and coordinated with stakeholders

Whereas the intended KUR (People’s Business Credit) incentive is, postponing principal payments plus interest for all KUR schemes that have been affected by COVID-19 for up to 6 months.

Based on the facts above, people’s expectations to face this pandemic will be calmer. So that the application of PSBB will also be maximized and reduce the Corona virus expansion rate to the end point.

Don’t dismiss, if economic factors are one of the most dominating things. Moreover, it is directly related to the problem of “stomach”. However, it is not only a stomach issue, a series of other problems such as credit installments, rent fees, electricity costs, or other cost details that make people more chaotic.

With this statement by President Jokowi, it will certainly strengthen the mentality of the people to depend on their livelihoods on the government, especially when facing this Corona outbreak. The synergy needed right now is felt to be quite large, because this solidarity is able to make us all able to fight the COVID-19 pandemic until the end. Let’s hope for mutual support so that all problems can be quickly resolved. Even with Corona being struck. Come on Fight COVID-19 together.

) * The author is a socio-economic observer, active in the Institute for Strategic Information Studies (LSISI)

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