Indonesia Recession, Government Must Give BLT Not Social Assistance

Illustrated (Irfan Meidianto / VOI)

JAKARTA - Indonesia has officially entered into the brink of recession after economic growth contracted for two consecutive quarters. To encourage economic growth, the government was asked to maintain people's purchasing power by providing direct cash assistance (BLT).

PKS Faction Commission XI member Anis Byarwati asked the government to provide BLT compared to social assistance (bansos) in the form of goods in the midst of a difficult situation due to the COVID-19 pandemic.

BLT is considered more capable of creating an economic turnover in each region. Included in small stalls. Meanwhile, Bansos is targeting large businesses that are vendors of the ministry.

Not only that, said Anis, BLT could also help people who had been laid off (PHK) to start a business. So, they can still survive the difficult situation due to the pandemic.

"I think BLT is good for the current conditions. Because the community needs direct funds for them to be able to do business. But don't get the wrong target," he said, in a virtual discussion entitled 'Effects of Recession in the Middle of a Pandemic', in Jakarta, Saturday, November 7.

Anis emphasized that the assistance provided by the government must really reach those who deserve to receive it. So far, he said, government assistance has not been on target.

"Some have received it many times from various sources, and some have not received it at all. The problem is data and data, we also convey it so that it can be corrected," he said.

Furthermore, Anis explained, the national economy is largely supported by household consumption. When public consumption decreases, economic growth will also decline. The contribution of consumption to economic growth is 57 percent. If household consumption falls, other sectors will automatically be carried away.

"The government must be able to help people prepare for recession during a pandemic and then help them not to lose their purchasing power," he said.