Govt Prepares Coronavirus Economic Stimulus Packages

TEMPO.CO, Jakarta - The government said on Tuesday that it is preparing stimulus packages to save the national economy from slowing any further in the middle of a global coronavirus (COVID-19) pandemic. This government stimulus is hoped to help relieve weight from businesses that have suffered from the pandemic. 

“The government will continue to prepare stimulus packages to overcome the slow economic growth. This is not only for the people’s consumption but also to provide a ‘cushion’ with our national economic rescue program,” said Finance Ministry’s fiscal and macroeconomic policy formulation staff Masyita Crystallin on Tuesday’s press release. 

According to the Central Statistics Agency (BPS), Indonesia’s economic growth in this year’s first quarter scored 2.97 percent year-on-year, which is significantly lower than the same period last year that scored 5.07 percent. 

Masyita explains that the sluggish economic growth is caused by the slowing consumption and investment throughout this year’s first quarter which was even before Indonesia first reported COVID-19 cases. 

“A number of sectors were already starting to be affected by the supply chain from China since February. Moreover, the tourism industry had already suffered since January,” said Masyita. 

According to the Finance Ministry special staff, the deepest contraction within the national consumption happened in the secondary goods segment such as the clothes and footwear industry. This is parallel to the physical distancing measures taken by the government that greatly reduced people’s outdoor activities, moreover, people are mainly spending on essential commodities. 

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