The Harsh Reality of Post-Pandemic Indonesia: Unemployment and Poverty Levels Reach Alarming Heights"
The COVID-19 epidemic, which has been plaguing the world since early 2020, has had an impact on both the global economy and the health sector. After the COVID-19 outbreak, Indonesia's economic position deteriorated rapidly, with unemployment and poverty posing grave concerns to the well-being of the populace.
The World Bank had estimated that Indonesia's economic growth would be approximately 5.1% in 2020, however, it later lowered its estimate to to be around -1.6% owing to the COVID-19 pandemic. In fact, according to the World Bank, the COVID-19 epidemic will raise unemployment by 2.8 million people in 2020.
According to data from the Central Statistical Agency (BPS), Indonesia's unemployment rate in February 2021 was 7.1 million, or roughly 6.26%. Compared to the prior year, when it was only 5.28%, this number grew. The main factors contributing to the high unemployment rate are the slowdown in economic activity and corporate layoffs.
Together with unemployment, Indonesia now faces a severe threat of poverty as a result of the post-COVID-19 economic environment. According to BPS data for September 2020, 9.78% of Indonesians, or around 26.42 million people, were living in poverty in March 2020. The COVID-19 pandemic, however, caused the poverty rate to rise to 10.19% in September 2020, or about 27.55 million people.
The COVID-19 pandemic's effects on poverty and unemployment rates have had a significant impact on Indonesians' quality of life. People who have lost their employment or enterprises struggle to preserve their way of life and find it challenging to satisfy their daily requirements.
In light of the COVID-19 pandemic, the Indonesian government must take the issues of unemployment and poverty seriously. To aid those impacted by the COVID-19 pandemic, the government has introduced a number of programs such Pre-Employment Cards, Productive Presidential Support, and social assistance. Yet, there is still room for improvement and community needs-based adaptation of the program.
In order to increase employment and lower unemployment, the government must also support economic growth. This program can be carried out by promoting foreign investment, domestic industry growth, and productivity and competitiveness improvements.
Since the COVID-19 outbreak, Indonesia's economy is currently experiencing significant difficulties. It is important to take unemployment and poverty seriously. The Indonesian government must improve its social assistance initiatives as well as implement initiatives to spur economic expansion and generate new jobs.
In addition, Indonesians can assist in addressing the economic crisis following the COVID-19 outbreak by supporting small and medium-sized businesses and shopping locally. Also, people can use the internet and technology to launch new businesses or open online stores that will provide new employment opportunities.
But the problems at hand can't be resolved quickly. After the COVID-19 outbreak, the Indonesian government and the people must collaborate to address the issues of unemployment and poverty. To revive the Indonesian economy and provide a better future for the Indonesian people, perseverance and hard effort are required.
References:
- Badan Pusat Statistik. (2021). Pengangguran Terbuka Menurut Provinsi, Februari 2021. Retrieved from https://www.bps.go.id/indicator/13/102/1/pengangguran-terbuka-menurut-provinsi.html
- Badan Pusat Statistik. (2021). Persentase Penduduk Miskin Menurut Provinsi, September 2020. Retrieved from https://www.bps.go.id/indicator/12/1572/1/persentase-penduduk-miskin-menurut-provinsi.html
- Bank Dunia. (2020). Indonesia Economic Prospects. Retrieved from https://www.worldbank.org/en/country/indonesia/publication/indonesia-economic-prospects-november-2020
- Kementerian Keuangan. (2021). Kebijakan Pemulihan Ekonomi. Retrieved from https://www.kemenkeu.go.id/kebijakan-pemulihan-ekonomi/
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