Nine Sectors to Rescue the Economy during Covid-19 Pandemic

10 Jun 2020

On 9 June 2020, Mohamad Ikhsan Modjo, one of our faculty members, was invited as one of the speakers in a talk show hosted by the BNPB (Badan Nasional Penanggulangan Bencana). This talk show discussed the 9 sectors to be reopened to rescue Indonesia’s economy in the midst of Covid-19 pandemic. The 9 sectors consist of:

  1. Mining
  2. Oil
  3. Industry
  4. Construction
  5. Plantation
  6. Agriculture
  7. Farming and fishery
  8. Logistic
  9. Goods transportation

Key points discussed during the talk show are:

  • Some of the above sectors contribute significantly to the nation’s GDP and employment. The economy is hit badly by Covid-19. It appears that it is time to start the new normal and to reopen the economy for the benefit of the society.
  • Essential factors during new normal:
    • Health protocol
    • Discipline of the society
    • Coordination between central and local governments with regards to socialization, communication, and implementation of rules or policy
  • New normal needs to be carefully implemented, as recovery process takes time.
  • The 9 sectors should be classified into 3 risk categories (high, medium, low), depending on some characteristics, such as indoor/ outdoor location, crowded level, etc. Different category should be treated differently as there is no one-size-fits-all strategy. For high risk sectors, such as industry, they should have more stringent protocols put in place. Several sectors that are hit the most by Covid-19, such as tourism, should receive most attention and support by the government.
  • In Indonesia, apparently all the provinces experienced some forms of social restrictions, although only several of them are formally in such state. This conclusion is based on Google mobility report which showed a declining trend in mobility during March, April, and May 2020. This may be the evident of pandemic of fear existence in the society.
  • Protocols in relation to movements of people, such as to and from workplace, needs to be implemented as well, to support the existing protocols currently already implemented in most workplaces.
  • To avoid the second wave of the pandemic, 3 factors need to be considered:
    • Tracing, testing, and treatment of Covid-19 patients and suspects
    • Discipline
    • Protocol monitoring and evaluation

(IM)