The Covid-19 pandemic is under control and the rate of confirmed cases is declining but new variants are still emerging. In this transitional period caution is required in policymaking, especially in the economic sector.
President Joko Widodo at the national coordination meeting for the Transition of Handling Covid-19 and National Economic Recovery in 2023, in Jakarta, Thursday (26/1/2023).
JAKARTA, KOMPAS — After the lifting of public activity restrictions or PPKM, Indonesia is entering a period of transition in treating the COVID-19 pandemic. All ranks of the government are called upon to exercise caution in formulating policies related to the economy so that proper economic growth can be maintained.
“This is a period of transition and we should remain cautious in policymaking, especially in the economic sector, where we are now in a very favorable position, with the third quarter recording the rate of 5.72,” said President Joko “Jokowi” Widodo when opening the National Coordination Meeting on the Transition of COVID-19 Treatment and National Economic Recovery 2023 in Jakarta on Thursday (26/1/2023).
The President appreciated the hard work of central government ranks down to village administrations in managing both the pandemic and the economic situation during the pandemic. “We were facing a very tough problem at the time and there were no standards, no norms, because we had no experience yet in dealing with a pandemic,” he added.
Amid the confusion at the outset of the pandemic, the President affirmed the macro- and micro-management undertaken was very effective. “All of us were working. I hadn’t witnessed it before. So, this served as a safety measure, as we all worked together,” he pointed out.
“Conducting gas-and-brake management is not simple. A slight mistake in calculation would make the economy collapse, but if we step on the gas too hard, the pandemic can surge. That was what we were doing, maintaining balance between health and the economy,” said the President.
We were facing a very tough problem at the time and there were no standards, no norms, because we had no experience yet in dealing with a pandemic.
Coordinating Economic Minister Airlangga Hartarto in his message reported that the pandemic was under control. The rate of new cases was declining but new variants continued to appear. The Indonesian economy had been growing by above 5 percent throughout 2022 and was expected to achieve 5.3 percent year on year (yoy).
According to Airlangga, the sectors of consumption and investment had again become a strong foundation for economic operation. Fiscal consolidation also had proceeded faster than in the original estimate. The state budget deficit had been below 3 percent in 2022, amounting to 2.38 percent.
Inflation in December 2022 had been controlled at 5.51 percent, unemployment had decreased to 5.86 percent in August 2022 and poverty to 9.54 percent in March 2022. “This performance was achieved thanks to the policy of the President, which was responsive and adaptive gas-and-brake control,” he added.
KOMPAS/RADITYA HELABUMI
The vaccinator injects a second booster dose of the Covid-19 vaccine to an elderly woman during vaccination at the Central Jakarta Mayor's Office in Jakarta, Wednesday (25/1/2023).
In the National Economic Recovery (PEN) program in 2020, the government provided a budget of Rp 695.2 trillion to safeguard the real sector in the beginning of the pandemic and its realization was Rp 575.8 trillion (US$46.5 billion) or 83.2 percent. In 2021, the government allocated Rp 744 trillion with its realization totaling Rp 655.1 trillion or 88 percent. In 2022 the PEN realization was Rp 414.5 trillion or 91 percent of the budget of Rp 455.62 trillion.
In the present situation of transition, the COVID-19 Control Task Force keeps functioning to protect the resident. Booster vaccines continue to be supplied gratis. The COVID-19 pandemic early-warning indicator and early-warning system are monitored and managed by the Health Ministry. Pandemic crisis-management protocols can be reactivated if any crisis occurs based on the Health Minister’s recommendation.
In economic terms, the end of PPKM returns the PEN program to the respective ministries/institutions. The health management program worth Rp 178.7 trillion is returned to the Health Ministry. The social aid budget in 2023 totals Rp 476 trillion.
Infection risk
Although the pandemic is under control, the risk of infection remains. For this reason, Central Board Chairperson of the Indonesian Allergy and Immunology Society, Iris Rengganis, said vaccination was still needed to strengthen the immunity of residents to COVID-19 infection.
So far, the threat of COVID-19 infection has persisted. Several countries have reported surges in new cases and new variants of the COVID-19 causing virus. “Second booster vaccines are administered according to the timeline. After six months, vaccination should be repeated because immunity declines,” she said.
Along with the administration of second booster doses to residents in general, first booster-dose vaccination coverage should be expanded. Today vaccination coverage is low, especially among members of vulnerable groups, such as senior citizens.
New COVID-19 cases are still reported; so are fatalities. The majority of cases treated with severe and critical symptoms as well as cases of mortality due to COVID-19 are those not yet vaccinated. Based on data from the Health Ministry, in the period from 4 October 2022 to 25 January 2023, 32,339 patients were treated with moderate, severe and critical symptoms.
Of the total, 38 percent were not yet vaccinated, 7 percent only got first-dose vaccination and 26 percent only second doses. Of the cases treated with moderate, severe and critical symptoms, the largest number comprised those aged above 60.
The same was true of fatalities due to COVID-19. In the period from 4 October 2022 to 25 January 2023, 5,473 deaths were reported. More than 50 percent of deaths in this period consisted of elderly residents.
The Health Ministry’s Director General of Health Service, Azhar Jaya, said new subvariants of Omicron had been reported in Indonesia at present. Besides, spikes in cases had occurred in several countries, including those with high vaccination coverage rates. Protection should therefore be strengthened through second booster vaccination.
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