PSBB re-imposition to not majorly impact economy: Finance Ministry

PSBB re-imposition to not majorly impact economy: Finance Ministry

Traffic in Menteng area, Central Jakarta, on Wednesday (Sept 23, 2020). The Jakarta Transportation Office recorded a 19-percent decline in the number of vehicles traveling to Jakarta a week after PSBB is re-imposed in the capital. ANTARA FOTO/Aprillio Akbar/wsj.

The retail sector is moving in a positive direction because people have to go shopping.
Jakarta (ANTARA) - Finance Ministry's Fiscal Policy Board Chief Febrio Nathan Kacaribu opined that re-imposition of the large-scale social restrictions (PSBB) policy in Jakarta, since Sept 14, will likely have no significant impact on the national economy.

"It will have a minimum impact on our estimate," Kacaribu remarked during an online discussion here on Friday.

The board chief pointed to a positive trend in the retail sector that came under heavy pressure in April and May.

"The retail sector is moving in a positive direction, as people have to go shopping," he pointed out.

Moreover, the PSBB is only imposed in Jakarta and that several other regions in the country continue to contribute significantly to the national economy, he noted.

"Jakarta's economy only constitutes a few percent of the Indonesian economy, though it is relatively large. However, other regions do not impose a strict social restriction policy, though they have to apply prudent management," he remarked.

In addition, the Indonesian economy is quite aggressive in facing the COVID-19 pandemic, as is apparent from the emergence of various food businesses to meet public demand, he stated.

"The public is accustomed to adapting to a new normal and their spending on foods does not decline but varies. It is extraordinary for our economy to remain agile though it grew at a slower pace as compared to last year," he noted.

Moreover, the government will continually monitor the impact of PSBB on the third-quarter national economy after it was extended for another two weeks until October 11.

"Its impact on the third-quarter economy will not be significant, but we will continue to monitor it," he affirmed.

Jakarta Governor Anies Baswedan has decided to extend PSBB in the capital city, scheduled to end on Sept 27, by another week until October 11.

The step was taken on the basis of an imminent continued rise in the number of new COVID-19 cases if PSBB is relaxed, the governor noted in a press statement released on Thursday.

Based on the results of monitoring and evaluation undertaken by the Jakarta Task Force for the Acceleration of COVID-19 Handling, the PSBB will be extended by another two weeks if the number of COVID-19 cases do not drop significantly.

“The coordinating minister for maritime affairs and investment has also approved the automatic extension of PSBB in Jakarta by another two weeks,” the governor stated.

Related news: Jakarta governor extends large-scale social restrictions till Oct 11
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