Nurhusaini(UAS)

1888203014

4.2

Covid-19

Topik : The economy is atrophied when covid 19

Title   : The economy during the covid-19 pandemic

Thesis statement  :

The impact of the corona virus pandemic against all aspects of Indonesia's economic sector has been highly unstable for economic growth.

Body pharagraph :

1. Economies are out of the ordinary.
2. Educational through informed technology.
3. Just doing things at home


Indonesian Economic Conditions Amid the Covid-19 Pandemic
Based on year-on-year growth, the source of Indonesia's economic growth in the first quarter of 2020 was the largest in the information and communication sector by 0.53 percent.

This is reasonable considering that there is a suggestion not to leave the house so many people access jobs, entertainment and education through information technology. Along with this, the volume of PLN electricity sales to households has increased.


The impact of the corona virus pandemic spread to all aspects, especially in the economic sector of the country of Indonesia so that economic growth becomes very unstable.

When the government is trying to optimize the condition of the Indonesian economy, the Covid-19 pandemic comes with all its negative effects. As we know now, the impact of this pandemic is very influential in all aspects, especially on health and economic conditions

Country. With the existence of the Covid-19 pandemic, it cannot be denied that the Indonesian economy is currently in a condition that can be considered "very unstable".

Based on growth from year to year, the source of Indonesia's economic growth in the first quarter of 2020 was the largest in the information and communication sector by 0.53 percent. This is quite understandable considering that with the advice of the government to "just at home" then many people carry out work, entertainment and education through information technology.

Along with this, the volume of PLN electricity sales to households also automatically increases. Based on a release from the Central Statistics Agency, the number of foreign tourists coming to Indonesia in Quarter 1 2020 also dropped dramatically by only 2.61 million visits, a decrease of 34.9 percent compared to last year.

This is in line with the inter-country flight ban, which took effect in mid-February. The number of rail and air transport passengers also grew negatively in line with the implementation of the PSBB.


Then when will the Covid-19 outbreak end and how will it affect the Indonesian economy?

So it is estimated that the peak of the pandemic in Indonesia has occurred on April 19, 2020 and is expected to end totally in late July 2020.

This data is released as of July 2, 2020 which is based on data from various countries to predict the end of a pandemic in the world. Based on these data, it is estimated that by the end of July 29, 2020 the PSBB policy will end soon. Thus, beginning of June all activities can resume normal activities.

If these predictions for education and research are correct, Indonesia's economic growth will reach its lowest point in the second quarter.

Eid al-Fitr which usually has a big enough influence to drive the economy, will be the opposite due to the existence of PSBB. On the bright side, if the activity is already running in June, the company and entrepreneurs still have time to start operating.


Indonesia's economic conditions still have a chance to rise. The absence of activity for nearly 3 months since mid-March still provides an opportunity for companies to immediately rise. The company's finances are expected to last for up to three months.

Unlike the case when normal activities begin to be held in August or even December. The company needs time to find new employees to start operations. Many companies will also not be able to survive for more than three months.

From the macroeconomic side, with a fiscal stimulus accompanied by a budget reallocation for health, social protection and national economic recovery from the financial sector, it is expected to be able to improve the economy slowly in the third quarter.

Using the Input-Output (IO) model, the PT Sarana Multi Infrastructure Economic Research Team estimates that a fiscal stimulus by the government of Rp405.1 trillion will create output in the economy of Rp649.3 trillion. Meanwhile, the added value and income of workers will increase by Rp355 trillion and Rp146.9 trillion respectively.

With the creation of output, added value, and income in the economy, the fiscal stimulus that is poured will absorb an additional workforce of 15 million people or 11.84 percent of the total workforce.


This fiscal stimulus is expected to contribute to Indonesia's economic growth in 2020 of 3.24 percent. Fiscal stimulus has also been followed by monetary stimulus provided by Bank Indonesia by reducing the benchmark interest rate and easing the Statutory Reserves (GWM).

The decline in the benchmark interest rate is expected to be followed by a decrease in market interest rates so as to encourage investment and economic growth. The Covid-19 pandemic has also given a new nuance to the global supply chain.

Sources of world supply which was previously controlled by approximately 20 percent by the Chinese state, has shifted to several other countries because of this pandemic. Of course to be able to win the cake in the global supply chain, Indonesia must improve itself to be more attractive to investors.

The reduction in corporate income tax rates that have been issued needs to be followed by improvements in terms of investment legal certainty, bureaucratic reform and a healthy employment climate. All efforts need to be mobilized in synergy so that Indonesia can rise from the conditions caused by the impact of the current Covid-19 pandemic.

Conclusion :

The impact of the Covid-19 Pandemic caused countries to combine policies to deal with Covid-19 and a large economic stimulus. This is due to the escalation of its spread which also has an impact on global economic growth and Indonesia. "The steps taken by all countries usually consist of fiscal instruments, whether they provide tax incentives or tax breaks, provide additional spending in general in the field of health and social assistance, and also help businesses including maintaining the financial system so as not to experience a potential crisis. This is done by all countries through guarantees, providing fixed loan guarantees, fixed loans disbursing or providing refinancing or restructuring facilities.