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Indonesia Under the New Normal: Challenges and the Way Ahead
[journal article]
Abstract As the Covid-19 crisis deepened in 2020, President Joko Widodo announced that Indonesia should prepare for the 'new normal'. But when social distancing restrictions were relaxed in June to encourage economic recovery, the virus was not yet contained in Indonesia. Since then, the rate of infection ha... view more
As the Covid-19 crisis deepened in 2020, President Joko Widodo announced that Indonesia should prepare for the 'new normal'. But when social distancing restrictions were relaxed in June to encourage economic recovery, the virus was not yet contained in Indonesia. Since then, the rate of infection has been rising faster than in many neighbouring countries. The pandemic has hit the economy hard, with a 5.3% reduction in GDP in the second quarter, the worst economic slump since 1998. In this Survey, we look at how Indonesia is preparing for the new normal. We argue that the government is focused on short-term recovery and does not have a clear strategy to address the medium- and longer-term implications of Covid-19. The response to the virus relies on public compliance to public health measures. There is a clear lack of emphasis on reducing the rate of infection through effective testing and tracing and enforcing social distancing and mobility restrictions. The government has developed an economic recovery plan that concentrates on cushioning the short-term impact of the crisis and supporting the poor and near-poor, rather than reducing long-term poverty and preventing structural changes in unemployment. Finally, we find that the pandemic is undermining the long-term financial sustainability of Indonesia's social health insurance system. The education sector is reasonably prepared for extended school closures and distance learning. Yet there is no strategy to address the accumulated learning losses resulting from this crisis.... view less
Keywords
Indonesia; epidemic; health care delivery system; compulsory health insurance; economic development (on national level); combating poverty; correspondence course; Southeast Asia
Classification
Health Policy
Economic Policy
Free Keywords
Pandemie; COVID-19; Seuchenbekämpfung
Document language
English
Publication Year
2020
Page/Pages
p. 269-299
Journal
Bulletin of Indonesian Economic Studies, 56 (2020) 3
DOI
https://doi.org/10.1080/00074918.2020.1854079
ISSN
1472-7234
Status
Published Version; reviewed