Economic recovery scenario to remain in place until 2021: minister

Economic recovery scenario to remain in place until 2021: minister

Coordinating Minister for Economic Affairs, Airlangga Hartarto. (Antara/ Public Relations of Coordinating Ministry for Economic Affairs)

We hope that in 2022 and 2023, (COVID-19) vaccines are found, so that they (people's lives and the economy) will be (back) in a normal position
Jakarta (ANTARA) - Coordinating Minister for Economic Affairs, Airlangga Hartarto, has said the economic recovery scenario prepared by the government would continue until 2021.


He made the remarks while delivering the keynote address at the national coordination meeting of the Workers Social Security Agency (BPJS Ketenagakerjaan) in Jakarta on Tuesday.


The minister said the scenario has been prepared because the pandemic is not expected to end in the near future.


In 2021, government policy will still remain focused on the scenario for economic recovery, he noted.


Under the scenario, efforts to deal with the health impact of COVID-19 will be carried out in conjunction with an economic recovery program, bearing in mind that the two things go hand in hand, he explained.


"When this health problem is resolved, the economy will return (to normal). So, the community is expected to be able to adjust their behavior towards COVID-19," he added.


The former industry minister also said the government would continue to implement health policies and accord them high priority in 2020 and 2021.


"We hope that in 2022 and 2023, (COVID-19) vaccines are found, so that they (people's lives and the economy) will be (back) in a normal position," he remarked.


In addition, Airlangga informed, the provision of social assistance will continue until 2021 and then it will be gradually reduced in 2022.


Other efforts to boost the economy will include increasing labor-intensive businesses and industries by 2022, running an MSME credit restructuring program, and providing funds and guarantees to the real sector, he noted.


"We will also continue to relax regulations. One of them is by transforming the regulations through the omnibus bill on job creation," Airlangga said.

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The government has also provided funds to the Association of State-Owned Banks (Himbara) and Regional Development Banks (BPD) to boost the provision of working capital to MSMEs and corporations.


Until now, Rp43.17 trillion has been channeled by banks to 519,797 recipients.


"Placement of funds in the Regional Development Bank (BPD) totals Rp11.5 trillion. It is hoped that this can rotate the economy at the community level," he said.


Overall, he said, the program carried out by the government to deal with the COVID-19 pandemic is aimed at protecting lives as well as people's livelihoods.


Measures for suppressing viruses; expanding testing, quarantine and treatment capacity; finding drugs; increasing the capacity of the health sector; and, preparing for vaccine production and distribution would help protect people’s lives, he elaborated.


Meanwhile, provision of social assistance to communities and stimulus to affected businesses and preparing other policies for national economic recovery would help maintain livelihoods, he added. 


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