What Is The Economic Value That Is Potentially Stagnant Due To The Java-Bali PSBB?

Illustrations (Irfan Meidianto / VOI)

JAKARTA - The government through the Chairman of the Committee for Handling COVID-19 and National Economic Recovery (KPCPEN) Airlangga Hartarto gave instructions to all local governments in the Java and Bali regions to tighten large-scale social restrictions (PSBB). The directive is planned to be carried out from January 11 to 25, 2021.

Meanwhile, the basis for this policy refers to the data on the mortality rate in these two regions which is 3 percent or above the national average. In addition, the recovery rate is quite alarming, which is below the national average of less than 82 percent.

"Provinces, regencies or cities that meet one of these criteria will later formulate regulations to accommodate the tightening of the PSBB according to their respective levels," said Airlangga as reported by VOI on Wednesday, January 6.

However, the bureaucrat who also holds the position of Coordinating Minister for the Economy emphasized that this latest PSBB is not for all regions.

"I want to emphasize that this is not all of Java and Bali. But the handling is micro in regencies or cities," he explained.

So, what is the economic potential that might be hampered from the implementation of this regional lockdown?

Quoting data reported by the Central Statistics Agency (BPS) in April 2020, the value of the gross regional domestic product (PDRB) in Java in 2019 reached IDR 9,487 trillion.

This figure contributes 59 percent of the total national GDP formation, which amounts to IDR 16,079 trillion.

Meanwhile, the main economic power forming GRDP in Java is supported by the manufacturing and agricultural sectors. Followed by trade, construction and mining.

Meanwhile, the PDRB of Bali Province in the same period was IDR 252 trillion or around 1.5 percent nationally. Some of the most influential economic sectors on the Island of the Gods include accommodation (tourism) and the provision of food and beverages.