Economy Start to Show Recovery Signs after PPKM Level 4 Implementation: Minister

TEMPO.CO, Jakarta - Minister of Finance Sri Mulyani Indrawati said that the Indonesian economy was starting to show signs of recovery after the government implemented strict restrictions on public activities (PPKM) from July to August. The restrictions were carried out after the spike of Covid-19 in Indonesia due to the emergence of the delta variant.

“August we saw a reversal of direction (in the economy) after we faced PPKM. Mobility began to increase and this then gave rise to activity in the consumption sector," said Sri Mulyani in the ISEI webinar on Tuesday, August 31, 2021.

Based on her explanation, Sri Mulyani indicated that changes in aggregate mobility or 7DMA as of August have moved in a positive direction. Last July, for seven days when the emergency PPKM took place, aggregate mobility fell to the level of -17.7. The indicator rose consistently until the beginning of the third week of August. Aggregate mobility has improved to the level of -11.1.

The government, said Sri Mulyani, carried out a policy strategy during July to August by referring to the recommendations of the World Health Organization or WHO. Learning from the pandemic that has been going on since March 2021, in dealing with the government's problems, the government relies on several priorities.

First, there is an intervention in the health sector. The government ensures that the public applies the 5M health protocol, namely maintaining distance, washing hands with soap, wearing masks, staying away from crowds, and maintaining immunity. Second, the government accelerates the vaccination program with the help of other agencies, such as the national police and army (TNI-Polri)

Third, from the budget side, the government extends social assistance to protect 40-50 percent of the population at the lower levels. On the other hand, the government ensures that the state budget does not work alone.

Indications of economic recovery can also be seen from growth that has begun to spread evenly in demand that is not dependent on state spending. This condition created optimism for economic recovery to increase after the second wave of the spread of Covid-19 took place.

Sri Mulyani hopes that in August and September, the momentum of the pandemic recovery will be maintained so that economic performance in the third quarter can recover gradually. "But we still have to be vigilant because with Covid-19 there are new variants such as the delta variant," he said.

Read: Sri Mulyani: Delta Variant Disturbs Economic Recovery Efforts

Francisca Christy Rosana | Maudey K. Setyakusuma (Internship)