Policy To Stop PPKM Must Be Balanced With Incentives To Certain Sectors To Press Inflation

Center of Reform on Economics (Core) Indonesia economist Yusuf Rendy. (Photo: Doc Antara)

JAKARTA - Indonesian Center of Reform on Economics (Core) economist Yusuf Rendy said that the policy of stopping the implementation of restrictions on community activities (PPKM) needs to be accompanied by providing incentives to certain sectors and efforts to reduce inflation levels.

"This policy (dismissal of PPKM) also needs to be accompanied by other policies, including policies to provide incentives for certain sectors and also policies to reduce relatively high inflation rates, especially at the end of last year," said Rendy, quoted from Antara, Monday, January 2.

He said the combination of the policy would determine the development of national economic growth in the first quarter of 2023 until the next quarter of 2023.

"Combination of this policy is actually important to increase the opportunity so that the national economic performance this year can achieve the target according to what is determined by the government," said Rendy.

He conveyed that the dismissal of the policy would have a significant impact on the tourism sector in Tanah AIR, to its derivative sector.

"With the growth of the tourism sector, the participation sector, such as transportation, then restaurants, food and beverages, also has the opportunity to have a positive impact," said Rendy.

He conveyed that the government's goal was to revoke the PPKM policy so that the performance of the national economy could return to the pre-COVID-19 pandemic level.

Even though Indonesia itself has recorded positive economic performance throughout the three quarters in a row in 2022, which always grows above 5 percent year on year (yoy).

The government has officially revoked the PPKM policy related to the COVID-19 pandemic after President Joko Widodo announced it through a press conference at the State Palace, Jakarta, Friday, December 30, 2022.