The Government Must Simulate The Impact Of COVID-19 So That It Can Prioritize The Most Affected Sectors

Illustration. (Photo: Unsplash)

JAKARTA - The outbreak of the corona virus or COVID-19 does not only affect the tourism sector. At present, all sectors have started to feel the impact of COVID-19. The previous government had also provided incentives for the manufacturing sector. Currently, the government is also asked to issue similar policies for other sectors.

Deputy Chairman of Commission VI Martin Manurung said the government must simulate the impact of COVID-19 on economic sectors. That way, policies can be directed with priority on the economic sectors that are directly affected.

"My guess is, for example, that the human intensive tourism, transportation, retail sector, including retail and manufacturing MSMEs involve a lot of workers," he told VOI , in Jakarta, Wednesday, March 18.

Martin said these sectors must also be sorted again. The government must categorize the performance of these sectors to obtain data that needs to be prioritized.

"Which sectors have been performing medium and well should be prioritized. The goal is that they can survive and continue to contribute to the economy. Meanwhile, those that have been performing poorly will be handled later," he explained.

From the demand side, said Martin, the government also needs to make a scheme to keep the demand side stable. For example, is it necessary to lower interest rates or extend tax levies so that people still have purchasing power.

"This demand-side policy may increase inflation, so it is necessary to measure the maximum limit. Inflation is still good, so that economic growth can be inhibited," he said.

Meanwhile, member of commission VI, Evita Nursanty, when contacted by VOI , said that she had also directly heard complaints from retail entrepreneurs about the decline in turnover which reached 50 percent. In fact, maybe in the future position it could fall even further.

"I think the tax incentives PPh 21, PPh 22, PPh 25 include a logical demand bank interest relief. Agree, don't only think about manufacturing and tourism," he said.

Evita said she believed that the government was currently calculating all the impacts of the COVID-19 disaster. It has also been decided to provide stimulus with monetary relaxation, fiscal support, postponement of bank credit payments, and tax relief as requested.

"So we see that all sectors are affected. Not only in Indonesia but throughout the world. But in this condition we all have to be able to contribute to overcoming this virus," he said.

"Entrepreneurs or rich people should work together to help. Because when we unite we can be strong. So that this disaster can quickly pass and economic activity can return to normal. This is the time for us to think about what we can give the country to overcome this virus. Entrepreneurs must appear here, "he continued.

Previously, an economist at the Institute for Development of Economics and Finance (INDEF) Bhima Yudhistira said that currently the government must also think about incentives in the real sector economy.

"Retail is also important to be supported, not only in the manufacturing sector," he said.

According to Bhima, the government can provide incentives in the form of discounts or discounts on electricity rates for shopping centers by 40 percent. So, it can help lower company operating costs.

"Discount PPh 21 for retail employees. Previously, the government only provided a PPh 21 discount for the manufacturing sector for six months," he said.

In addition, Bhima continued, the government can provide incentives in the form of relief of interest expense and bank principal installments. For example , a grace period , or there is a grace period after payment is due without calculating fines.

Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), Rosan Roeslani, said that entrepreneurs asked for the tax relaxation incentives to be expanded. This incentive should be given to all national industrial sectors.

"We give a suggestion that it (tax relaxation) be expanded in the sense of words such as PPh 21 not only in certain industries but to all industries. Including PPh 25 that is given to all industries is not restricted," said Rosan, at a press conference at Menara. Kadin Indonesia, as quoted by detik.com .