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Jakarta Post

Boost social aid to offset PSBB, says Indef

  • Dzulfiqar Fathur Rahman


Jakarta   /   Tue, September 22 2020   /  01:00 am
Employees work in an office in Kuningan, South Jakarta on Sept. 11, 2020. Nonessential workplaces and government offices are only allowed to have no more than 25 percent of their employees to work in the office at the same time during the new large-scale social restrictions (PSBB) period in Jakarta.(Antara/Akbar Nugroho Gumay)

The government will need to augment its social safety net to offset the economic blow of the reimposed large-scale social restrictions (PSBB) in Jakarta, an economist with the Institute for Development of Economics and Finance (Indef) has said. Izzudin Farras of Indef said on Thursday that the lack of a social cushion could pose a risk to the economy, as the capital city accounted for nearly one fifth of Indonesia’s gross domestic product (GDP).

“If Jakarta’s economy remains negative in the third quarter, with the apparent impact since July and August, it will hit the national economy and indicate recession at the national level,” Izzudin said in a virtual discussion. Izzudin added that the government needed to improve its social assistance programs by placing more emphasis on the millions of vulnerable members of the middle class who were pro...