Sabtu 03 Apr 2021 11:09 WIB

Three Game-Changers Against Indonesia's Economic Contraction

Cooperation program will help accelerate Indonesia's vaccination program and economic

Social protection programs are provided to the poorest 40 percent of the population and vulnerable groups. (Capture: Ilustrations Rupiah and Dollar AS)

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Vaccination Assisted Global Economy

Bank Indonesia (BI) predicts that the domestic economic recovery will continue with the massive vaccination program. Director of the Department of Economic and Monetary Policy of Bank Indonesia, Riza Tyas, said that the global vaccination program has proven to accelerate economic recovery.

"Global economic growth continues to improve, even though it is not evenly distributed, one of which is due to the accelerated implementation of the Covid-19 vaccination, especially in developed countries," said Riza.

There has been accelerated implementation of vaccinations in developed countries, such as the UK and the United States. According to Bloomberg data on March 15, 2021, the vaccination program per percent of the total population in Israel (107 percent), followed by the United Arab Emirates (66.1 percent), United Kingdom (39.2 percent), United States (33.3 percent), and Denmark (14.4 percent).

Indonesia itself is still one percent of the total population with a global total of 4.6 percent. Acceleration is evenly occurring in European countries.

Riza said this acceleration was supported by the country's ability to secure vaccine supplies and implement vaccinations. "We can see that with the acceleration of vaccine programs in developed countries, their economies will gradually improve and become stronger, as happened in Europe, as well as the US."

BI sees that the vaccination program in Indonesia has also been more massive and faster than neighboring countries such as Malaysia, Thailand, and the Philippines. Even though the conditions are demographic and geographic, which are classified as more difficult.

He believes that domestic economic conditions will continue to improve in line with vaccinations and the global economy. The volume of world trade and commodity prices is now increasing, which can improve economic performance, particularly in the industrial sector.

This improvement has been proven to improve Indonesia's export performance for manufactured products such as steel, metal ores, organic chemicals, and electric machines. This is in line with improving demand from Indonesia's main trading partner countries.

The Indonesian's homework that is still being done is to further boost domestic demand. The low level of consumption requires a synergy of national economic policies that continues to be strengthened. Bank Indonesia itself estimates that Indonesia's economic growth in 2021 can increase in the range of 4.3-5.3 percent.