BKKBN RI's Economic Value Decreases When Population Rate Increases

Illustration/Photo: Antara

JAKARTA - The National Population and Family Planning Agency (BKKBN) said the country's economic condition had decreased when the population rate in Indonesia experienced a significant increase.

“The COVID-19 pandemic has also played a central role in its impact on productivity in almost every ASEAN country. Both the Indonesian and Filipino workforces have lost their jobs (temporarily or permanently) or experienced a reduced workload. Lockdowns in half of the countries played a major factor in the decline in income," said BKKBN Deputy for Training, Research and Development Rizal M. Damanik, quoted by Antara, Friday, April 22.

Rizal said Indonesia is predicted to experience a demographic bonus period in 2030-2040. Where the productive age population aged 15-64 years reaches 64 percent of the total projected population of 297 million. This number is greater than the population of unproductive age under 15 years and above 64 years.

Data from the Indonesian Population Census also states that Indonesia's population will increase to 270.20 million in 2020, compared to 237.63 million in 2010.

The high population increase, said Rizal, can then assist the government in creating a conducive political and economic ecosystem through the development of superior human resources. Even in February 2020, the National Labor Force Survey stated that the millennial workforce reached 51 million people. Generation X workforce also still reaches 45 million people.

"But the National Labor Force Survey in August 2020, both age groups of the workforce experienced a decline. However, in August 2021, there will be another increase, especially in two age groups, namely 48 million people in the millennial group and 45 million people in the generation X group. This means that COVID-19 is still having an effect, he said.

However, the presence of the COVID-19 pandemic has dealt a blow to all parties in society and has led to increased spending on public health. It even causes changes in the supply of labor due to mortality and morbidity which leads to a decrease in family income.

Even though President Joko Widodo targets that by 2045, Indonesia can get out of the middle class trap with a per capita income of IDR 27 million per month or IDR 320 million per year. Including an increase in gross domestic product (GDP) reaching 7 trillion US dollars so that Indonesia can be included in the top five of the world economy.

University of Indonesia Demographic Institute Senior Researcher Omas Bulan Samosir confirmed that the number of poor people in Indonesia has increased due to the COVID-19 pandemic in Indonesia.

At the beginning of the COVID-19 pandemic, Omas stated that the number of poor people in Indonesia in March 2020 was 26.42 million people, then increased to 27.55 million people in September 2020.

"Compared to 2019, the number of poor people was 21.14 million in March and then 24.78 million in September 2019. Then there was a slight decrease in 2021, which was 27.54 million in March and 26 .50 million in September 2020," said Omas.