TEMPO.CO, Jakarta - INDEF economist Enny Sri Hartati said that the government's economic stimulus has failed to drive economic growth which has plummeted because of the Covid-19 pandemic. The failure is apparent from the economic growth rate recorded in the first quarter of 2020 that only reaches 2.97 percent.

"The government is slow and late, either to anticipate, to eradicate, and mitigate the impact of Covid-19. The government policy has failed to drive economic growth, especially household consumption," Enny said on Thursday, May 7, 2020.

He said that the indicator or the main construct of the gross domestic product (GDP) is household consumption. Dropping household consumption from 5.02 percent in the fourth quarter of 2019 to 2.84 percent in the first quarter of 2020 is a clear indication of decreasing purchasing power.

As many as 40 percents of underprivileged people and subject to poverty are capable of driving consumption because most of them have lost their jobs and daily income.

Sri further added that the government's failure has been occurring since the first stimulus where the government focuses on tourist visits, both foreign and domestic. Whereas, the World Health Organization had reminded governments about the danger of the spreading of the coronavirus.

"Don't forget, at that time the government's First Circle are racing to invite foreign tourists to Indonesia. Another mistake, the government is late to make a decision on implementing lockdown or large-scale social restriction," Tri said.

For the government's slow reaction, people who are classified as middle-income families, are now facing risk falling under the poverty line. This is because most people are making their living or running their business in the informal sector.

Enny said that the implementation of large-scale social restriction has made the process of sales and purchase cannot be done properly.

"Now, 40 percent of the lowest-income families have lost their purchasing power. Like it or not the government must act fast to distribute social aid to help them live," Enny said.

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