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2020 The Year Of Sharing The Burden To Save The Economy

2020 Economic Crisis
2020 Economic Crisis

JAKARTA – 2020 may be a gloomy year that all human beings on earth want to forget because of the extraordinary event of the pandemic Covid-19. All hopes and dreams have been replaced with uncertainty and dark fantasies. Since the plague thought to have originated in Wuhan, China, spread rapidly and infected humans who neglect to maintain cleanliness.

The world is re-imagined by the great plague that occurred almost a century ago. And claimed millions of victims around the world namely the Spanish Flu in 1918-1920. Since then, economic activity has begun to slow down in line with the limitations of human activities. And goods and services due to the Large-Scale Social Restrictions (PSBB) policy.

Indonesia recorded a contraction in the second quarter of 2020 minus 5.32 percent or for the first time since the financial crisis of 1998. This minus growth has also occurred in almost all countries in the world.

The Government Continues to Work to Restore the Economy 2020 to 2021

The government is well aware that handling health problems is an important thing that must be carried out from the start. Along with various further efforts to restore a sluggish national economy. One of the important policies undertaken was to widen the budget deficit space until 2022 through the issuance of the Perppu No.1 of 2020. Which was later passed into Law No.2 of 2020.

This widening is urgent considering that Law No.17 of 2003 locks in a budget deficit of only 3 percent of GDP. And financing for the handling of extraordinary cases is still limited. With the easing of the budget deficit of up to 6.34 percent of GDP. The government then prepared a budget of IDR 695.2 trillion for handling Covid-19 and the National Economic Recovery (PEN) program.

The financing includes Rp. 99.5 trillion for health spending, Rp. 230.2 trillion for social protection, Rp. 67.86 trillion for sectoral KL and local government, Rp. 116.31 trillion for MSMEs, Rp. 60.73 trillion for corporations and Rp. 120.61 for business incentives. trillion. The selection of this sector has been adjust to maintain people’s purchasing power. And the continuity of large and small and medium enterprises so that consumption and industrial activities can move the economy back into motion.

 

Also, read too another news article here.

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