Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/270064 
Year of Publication: 
2021
Citation: 
[Journal:] Cogent Economics & Finance [ISSN:] 2332-2039 [Volume:] 9 [Issue:] 1 [Article No.:] 1911439 [Year:] 2021 [Pages:] 1-51
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
The article assesses the impact of COVID-19 pandemic on the Indonesian economy and the influence that repercussions from the pandemic have had on the country's long-term development goals and objectives. The article used backcasting approach to link expected development objectives and targets with current state of social and economic conditions. Results demonstrated a gap between long-term and current economic performance, attributable largely to the impact of COVID-19 pandemic on the economy and society. A drastic decline in aggregate demand due to contraction in household and corporate expenditure, investment, and exports sparked a surge in open unemployment and underemployment. While swift and wide-ranging government response helped to attenuate the impact of the crisis on the economy and vulnerable sections of society, COVID-19 pandemic impact compounded existing fundamental problems facing the Indonesian economy including de-industrialization, wide urban-rural, East-West, inter-regional digital divide; unemployment and underemployment; weak human resource development; low participation in global value chains; and low education effectiveness. Policy recommendations to nudge the economy and society back to its long-term development trajectory include initiatives to enhance emergency response program effectiveness and tackling structural problems. The initiatives include strengthening and widening the coverage of government programs that support business and society in education, labor and employment, and SME and trade. The thrust of the pathways stresses the need for accelerating the implementation of the national information highway and the ASEAN connectivity initiative. Achieving will support efforts to mainstream the adoption and deployment of digitalization in the economy, government, and transboundary trade.
Subjects: 
COVID-19 pandemic
economic zones
flipped classroom
GVCs
Industrial parks
labor relations
product complexity
SMEs
JEL: 
A30
E02
E24
E26
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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