Covid-19; Economic Recession
The economic crisis that is currently being experienced by some countries in the world is becoming a problem that must be quickly solved very wisely. (Foto: Ahmad Said Rifqi/reviewnesia.com)

The economic crisis that is currently being experienced by some countries in the world is becoming a problem that must be quickly solved very wisely. The global economic crisis may occur due to the halt of trade activities that are common by every country due to the Covid-19 pandemic. A country in Southeast Asia such as the Philippines has already announced that they are experiencing a recession due to the Covid-19 pandemic. Meanwhile, a country in Southeast Asia such as Indonesia is still trying to avoid recession. Some policies have been done by Indonesia to prevent recessions such as domestic policies that create economic stimulus.

The problems were very difficult and also challenges that are currently being faced by several countries in the world make there must be a concrete role of each coconut of the government of a country. They are required to be able to solve this problem by presenting new policies that have multiple benefits at once. It must be able to stop the spread of the Covid-19 virus and the policy should not harm many parties and should be able to increase the economic activity of the country.

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The international economic crisis can occur due to a decrease in trade activity and decreased purchasing power of people in various countries. Based on data published by the International Monetary Fund (IMF) it is mentioned that international economic growth will decrease by as much as 5% from the previous estimate. Many communities use their savings to meet their needs. Today people are more selective in spending and setting aside their money for more important purposes in the face of this pandemic situation (BBC, 2020).

The spread of the Covid-19 virus in Southeast Asia itself is quite significant as experienced by Indonesia, Malaysia, Singapore, and also the Philippines. The four countries are the four countries in Southeast Asia that have experienced a high number of positive cases of the Covid-19 virus. Data from the World Health Organization (WHO) found that as of August, the number of Covid-19 positive cases in Southeast Asia reached 3,821,367 (WHO, 2020). Indonesia and the Philippines are the countries with the highest number of Covid-19 viruses. With the decline in the number of the positive case, Indonesia and the Philippines are in a new problem that is the problem of economic crisis.

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The Philippines is one of the countries in Southeast Asia that is already experiencing its country’s economic recession. This was conveyed directly by the Government of the Philippines which stated that its country experienced a decrease in economic income by minus 16.5 % in the second quarter. This is in the background due to the long lockdown policy imposed by the Government of the Philippines to prevent the spread of the Covid-19 virus. This is the second recession the Philippines experienced after it first occurred in 1981. However, the economic recession experienced by the Philippines today is considered different, many observers consider the Philippines is now stronger in dealing with and looking for a way out of the recession.

Indonesia is also the country with the most positive cases in the Southeast Asia region. Until now, positive cases of Covid-19 in Indonesia continue to increase. However, the Indonesian government has made policy for implementing the new normal. Where this was done as a way to restore the movement of the national economy which had been halted due to the implementation of lockdowns. This is also an illustration of the Government of Indonesia’s efforts to prevent an economic recession. Indonesia’s economic growth in the second quarter continued to contract.

The Indonesian government has made several efforts such as restoring the wheels of the economy such as re-opening business places, providing assistance to workers who have been laid off and providing social assistance to workers whose income is below 5 million rupiahs, and providing assistance in the form of basic foodstuffs to people who really needed it.

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This policy was made by the Indonesian government to increase people’s purchasing power slowly and to restore the wheels of the economy starting from small and middle-class businesses. In addition, the Government of Indonesia also provides much other assistance to the community to support their daily needs, although this assistance is still relatively small. In addition, President Joko Widodo has budgeted funds of US $ 24 billion to accelerate the national economy recovery where the budget will be distributed to 6 sectors, namely the health, social, micro-industry, funding for corporate and business incentives.

Where is illustrated in the policymaking, the Indonesian President as the executive actor here involves other institutions that are related to pandemic prevention and economic recovery. Paying attention to various aspects and also the consequences that will result from the policy, focusing the policy according to the interests and needs that are being experienced (domestic interest). The existence of this policy will certainly affect Indonesia’s foreign policy in responding to this pandemic. Such as policies regarding export and import of goods and also other aspects related to the international scope.

Penulis:

*) Penulis adalah Mohammad Rayyan & Muhammad Zaki Nadhiransyah, Akademisi Hubungan Internasional Universitas Bina Nusantara.
**) Tulisan ini sepenuhnya menjadi tanggung jawab penulis, tidak menjadi bagian tanggung jawab redaksi reviewnesia.com