Airlangga Hartarto Affirms PPKM Micro Encourages Optimism And Boosts Public Purchasing Power

JAKARTA - The growth in national spending in 2021 has experienced significant improvements. This is inseparable from the government's success in implementing the PPKM Micro policy in a number of provinces in the country.

This policy has been proven to be able to curb the spread of COVID-19 and reduce the number of positive cases in areas implementing Micro PPKM. This condition has made public confidence begin to grow and hopes for an improvement in the economy are increasingly real.

From last year's data, due to the COVID-19 pandemic, national spending activities have indeed dropped dramatically. The Indonesian economy is driven more by government spending through the state budget. For example, through the provision of economic stimuli and various policies to relax bank taxes and interest.

Now based on the Bank's Big Data, the National Expenditure Figures or the sum of spending of all Bank Customers via several payment channels shows significant improvements. In April alone, the National Expenditure growth increased quite sharply.

"The National Expenditure Growth (YoY) in April 2021 experienced a very sharp increase, namely growing 32.48 percent (YoY) for the Non-Seasonally Adjusted and 13.11 percent (YoY) for the Seasonally Adjusted," said Coordinating Minister for the Economy Airlangga Hartarto. in a virtual press release Monday, April 19.

Data also shows that the revenue growth of the industrial sector (YoY) in April 2021 has increased, namely growing by 10.26 percent (YoY) for the Non-Seasonally Adjusted and 1.46 percent (YoY) for the Seasonally Adjusted.

Growth in Indonesia's manufacturing sector has also increased in line with the economic recovery in the first quarter of 2021. This is reflected in the Indonesian Manufacturing Purchasing Managers' Index (PMI) in March 2021 at the level of 53.2. This figure is an increase of 2.3 points from the previous month which amounted to 50.9.

This increase was driven by various stimuli from the government, which enabled the domestic manufacturing sector to expand rapidly. One of them is to provide relaxation of Sales Tax on Luxury Goods Borne by the Government (PPnBM-DTP) from March 1 to December 31, 2021. For example, for four-wheeled vehicles with engine capacities of up to 1,500 cc. The policy will also be extended to vehicles with an engine capacity of 2,500 cc starting April 1.

From April to May 2021, it is believed that the government's firmness in ensuring that employers pay the holiday allowance (THR) for employees and laborers is believed to have strengthened people's purchasing power. The government also ensures THR for ASN, TNI and Polri will be given D-10 or at least D-7 Lebaran.

This is regulated in SE Mennaker M / 6 in 2021, which requires THR to be paid in full (not in installments), no later than H-7. Policies will further strengthen people's purchasing power.

This policy was accompanied by the Harbolnas (national online shopping day) Ramadan Program. "The government will impose free shipping costs for e-commerce transactions. Ongkir will be borne by the Government or the Digital Platform, for five days (D-10 to D-6), "said Airlangga Hartarto.

Activities also increase public spending on domestically produced goods, especially from MSMEs. This is because MSMEs are the majority provider of goods on various national e-commerce platforms.

In addition to economic leveraging programs and increased public spending, the government also runs social assistance programs. The Social Assistance Distribution Program in the form of 10 Kg of Rice, with the target that PKH Non-PKH Staple Food Card Participants will be given more quickly.

There are about 8.8 million non-PKH participants who received 10 kg of rice per person. While 10 million Cash Bansos participants receive 10 kg per person using CBP Rice (BULOG).

Apart from PPKM Mikro which is slowly showing its results, the government is also holding a Delivery Sharing Campaign for Families at Home led by the Head of the PEN Task Force and the Minister of Communication and Information. These various programs are expected to further strengthen people's purchasing power which will lead to increased economic activity and national economic recovery.