Observer: The Micro-Scale Community Activity Restrictions Does Not Stop The Pace Of Economic Recovery

JAKARTA - Research Director of the Center of Reform on Economics (CORE) Indonesia Piter Abdullah assessed that the micro-scale policy of limiting community activities (PPKM) implemented by the government since February 9, 2021, has not stopped the economic recovery process.

"With the easing of the COVID-19 cases due to the PPKM policy, the economy will gradually recover. The government must prioritize pandemic control first", Piter said quoted from Antara, Sunday, April 18.

Piter said that the micro-scale PPKM was intended to reduce the spread of COVID-19. Therefore, he continued, the PPKM should be seen from its impact on the spread of COVID-19 itself.

"We should be grateful for the last two months that COVID-19 cases have continued to decline. After experiencing a high increase of up to tens of thousands of new cases per day, now the number of cases has subsided to 4 thousand new cases. This decline cannot be separated from the PPKM policy", he said.

Meanwhile, from an economic perspective, the process of economic recovery is still ongoing and several indicators confirm this.

"Such as the Indonesian Red Cross (PMI) Index for the last three months in the expansion zone. Sales of motor vehicles in March even increased significantly due to the stimulus policy of easing tax (PPnBM). It is estimated that this will also be the case with property sales", said Piter.

Deputy Director of the Institute for Development of Economics and Finance (INDEF) Eko Listyanto said that in general there is currently an increase in optimism for the domestic economy.

The Prompt Manufacturing Index (PMI) will also increase in March 2021, especially for the food sector as it anticipates an increase in demand for fasting and Eid.

"Since the Micro-scale PPKM has been implemented, the COVID-19 cases have decreased relatively, although currently there are 6.000 positive COVID-19 cases per day. When it comes to economic recovery, control and acceleration of vaccination are still the main factors so that economic optimism remains on track to increase", said Eko.