Ari Kuncoro on IDX Channel: Dissecting Strategies for Accelerating Indonesian Economic Recovery in 2021
Hana Fajria – Public Relations of FEB UI
Depok – (27/11/2020) The government revealed that fiscal policy in 2021 will focus on accelerating economic recovery and strengthening reforms. The government has prepared 4 strategies to accelerate Indonesia’s economic recovery in 2021, including continuing and completing the handling of Covid-19 and restoring the economy, strengthening structural reforms by improving the investment climate, encouraging innovation and competitiveness, reforming the State Budget both in terms of revenue and expenditure, and focusing on national development priorities in health, education and communication technology, as well as information on food security, social protection and tourism.
“For forming a pattern for accelerating Indonesia’s recovery, we must focus on the trade, accommodation, restaurant and manufacturing sectors. The main orientation remains health and information and communication. “Ari Kuncoro, Rector of UI said , in the Market Review event “Dissecting Strategies for Accelerating Indonesian Economic Recovery in 2021” on IDX Channel, Friday (27/11/2020).
Moreover, to restore the economy in 2021, the government must not only restore, but also increase growth. Recycling the purchasing power of the upper middle class, because many people hold back their purchasing power, hence holding the economy immobile. Also, the government must keep the supply chain and demand side balanced. Meanwhile, the 3M approach (wearing masks, maintaining distance and washing hands) needs to be improved for the recovery of the national economy.
“The demand side, such as social assistance and stimulus, must be balanced and sustainable. Furthermore, vaccination needs to be conducted because it is a game changer. Availability of vaccines is very much needed for economic recovery. For that, in 2021 the government should focus on allocating a prioritized budget for vaccines” said Prof. Ari.
As a result of Covid-19, the global effects of world trade are increasingly felt. For this reason, the roadmap for the recovery movement needs an indication of an effective economic improvement. The effectiveness of health and economic treatment encourages consumer confidence in consumption. At the end of the session, Prof. Ari explained that the investment climate in 2021 has the potential to increase along with the relocation of foreign investors. The government must also think about food security, by avoiding convoluted regulatory problems. (hjtp)
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