Business Talk Series # 6: National Economic Recovery Strategy in Handling the Pandemic COVID 19

Bogor, 27 June 2020 – School of Business, IPB University (SB-IPB) again held the sixth edition of the Business Talk Series (BTS) webinar on Saturday (27/6). In collaboration with the Ministry of Finance, Bank Indonesia, and the Supreme Audit Agency, the webinar carries the theme “Economic Solutions for Handling the Covid-19 Pandemic Facing the Challenges of Accountability, Flexibility, Speed ​​and Risk of National Economic Recovery Policy”. The webinar takes place through a virtual zoom meeting room and live streaming via the IPB Business School Youtube account.

The sixth edition of the Business Talk Series presented three speakers, including 1) the Minister of Finance of the Republic of Indonesia, Sri Mulyani Indrawati, PhD, delivered a topic regarding the Strategy and Implementation of the National Economic Recovery Program in Handling the Covid-19 Pandemic; 2) Governor of Bank Indonesia, Perry Warjiyo, PhD, spoke about BI’s support for the National Economic Recovery and the State Budget; and 3) Deputy Chairman of the Republic of Indonesia Supreme Audit Agency, Dr. Joko Agus Pramono conveyed the topic of the State Financial Management and Accountability Audit Strategy in Handling the COVID-19 Pandemic. Rector of IPB, Prof. Dr. Arif Satria, SP, MSi gave a speech as well as officially opened the webinar business talk series. Dean of SB IPB, Prof. Dr. Ir Noer Azam Achsani acted as moderator. The webinar was opened by Zahraa Zaahirah Abidin, SBns as the host at 13.00 WIB, attended by various stakeholders consisting of partners, lecturers, students, alumni, and the general public who work as businessmen, executives, politicians, bureaucrats and NGOs.

The dynamics of the covid-19 pandemic in the world spread quickly and widely in a short time creating a health crisis with vaccines, drugs, as well as limited equipment and medical personnel. This pandemic has a domino effect on social, economic and financial aspects. The cessation of economic activities has an impact on employment, consumption, investment and export-import activities.

Sri Mulyani Indrawati, PhD said that “The slowdown occurred in all components affecting Indonesia’s economic growth so that it only grew 2.97% in the first quarter of 2020. Sectoral growth in the main sectors supporting the national economy also experienced a slowdown, the primary sector consisting of agriculture and mining only grew 0.18%, the secondary sector consisting of manufacturing, construction, electricity, gas and water grew 2.38%, and the tertiary sector which consisted of trade, information and communication, transport and warehouse, financial services and insurance, and other services. ” 

“State income and state spending also experienced negative growth compared to last year, while state spending, meanwhile, had an increase in nominal terms and the ratio to GDP was higher than in the last three years. The budget for handling covid-19 to handle health, social protection, support for MSMEs, the business world, and local governments reaches a deficit of Rp.695.20 trillion. ” he continued.

In terms of monetary policy and monetary operations, Bank Indonesia provides support for the recovery of the national economy and the State Budget through the authority of BI as regulated in Law No.2 of 2020 concerning the stipulation of Perppu number 1 of 2020 concerning state financial policy and financial system stability for handling Covid-19 and / or in the context of facing threats that endanger the national economy and / or financial system stability, it becomes a law. “Bank Indonesia’s policy mix for national economic recovery in handling COVID-19 is carried out through six aspects, including (1) lowering interest rates; (2) stabilization of the rupiah exchange rate; (3) money and foreign exchange markets; (4) loosening of liquidity; (5) macroprudential easing; and (6) payment system ”said Perry Warjiyo, PhD as Governor of BI.

Furthermore, Deputy Chairman of the Supreme Audit Agency, Dr. Joko Agus Pramono, said that the role of BPK in handling Covid-19 in Indonesia is to ensure accountability for All is appropriate, transparent, accountable and obedient to the provisions of emergency conditions. Furthermore, the discussion and question and answer session took place interactively. Prof. Azam as the moderator asked several questions which were summarized from the various questions of the webinar participants which were conveyed through the chat room on the Zoom application and Youtube. The webinar event was closed with a close statement from Prof. Arif Satria as the Chancellor of IPB University before being returned to the presenter. At the end, the webinar participants responded positively to the business talk series. (FK)