At The G20 Forum, BI Governor Perry Warjiyo Encourages Efforts To Restore The Tourism Sector Due To The Pandemic

Governor of Bank Indonesia Perry Warjiyo. (Photo: Antara)

JAKARTA - Bank Indonesia (BI) Governor Perry Warjiyo said that the pandemic left a scarring effect for economic activity in the tourism sector for the medium to long term that needed to be anticipated.

In his notes, the correction for global tourism sector growth was 11 percent, deeper than other sectors which averaged 6.4 percent.

"In this case, tourism needs to be a priority for handling, considering that this sector is a pillar of the global economy that involves youth, women and the informal sector," he said while speaking at the G20 side events as reported on the official website today, Thursday, March 10.

Perry added that a prolonged shock to the tourism sector could have an impact on fiscal problems and credit risk. To deal with it, he offered a number of innovations such as the promotion of domestic tourism, eco-tourism, technological innovation, and linking tourism with other sectors such as agriculture and the development of export products.

"The recovery of the tourism sector also depends on a country's policy on tourist mobility related to health issues," he said.

Furthermore, Perry explained important steps to accelerate inclusive economic growth, including through relocation of workers to reduce unemployment and support new skills, relocation of capital and investment support.

Then, increasing inclusion and digital literacy through the use of technology, as well as handling and preventing pandemics are crucial.

"Bank Indonesia hopes that corporations need to restructure their business strategies, financial structures, management and resilience through digitalization to keep going. Banks also need to review lending to priority sectors and working capital loans for business expansion," concluded BI Governor Perry Warjiyo.