Without it, the macroeconomic structure will collapse.
Jakarta (ANTARA) - Lead co-chair of Think 20 (T20) Indonesia, Djisman Simandjuntak, has said that restoring supply chains is crucial for recovering the economy of many countries, including Indonesia, amid the COVID-19 pandemic.

"The inflation experienced by a number of countries currently is the result of supply chain disruption,” he said at the T20 online media workshop and press conference here on Wednesday.

However, restoring the supply chain would be quite difficult in the midst of restrictions on community activities, which have been imposed to curb the transmission of COVID-19, he noted.

Furthermore, high inflation in a number of regions -- such as the United States, China, and Europe -- should evoke concern, although various economic indicators in the countries are starting to improve, he added.

"Thus, we are facing complicated choices on how to mobilize the stimulus package to encourage economic recovery," he said.

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Hence, creative plans are required while implementing stimulus policies, including policies outside the traditional macroeconomic sector, he added.

One of the policies that can be considered in the future is encouraging green and sustainable economy, as the policy also promotes economic stability, he said.

"Still, stability is very important. Without it, the macroeconomic structure will collapse," Simandjuntak emphasized.

He said he expected the economies of Indonesia and other countries to not surrender to the slowdown caused by the pandemic and see a stronger revival.

The T20 is an engagement group of the G20 for gathering leading global think tanks and research centers. It serves as the "ideas bank" of the G20 for providing research-based policy recommendations to G20 policymakers.

The T20, under Indonesia’s G20 Presidency, will hold two major events—the Inception Conference and the T20 Summit which are scheduled to be held from February 9–10, 2022, and September 26–28, 2022, respectively.



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Translator: Agatha Victoria, Uyu Liman
Editor: Rahmad Nasution
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