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Indonesia balances economy and pandemic support: Finance Minister

Indonesia needs to “protect people” during a pandemic and spend more to support them. And Indonesian Treasury Minister Sri Mulyani Indrawati insisted on Tuesday that it is unlikely to undermine economic recovery.

Indonesians’ so-called social safety nets have increased by 20% and medical costs have increased by nearly 19%, Sri Muriyani told CNBC’s Squawk Box Asia on Monday. Indonesia’s social safety net policy is expanding government support to the poor and those affected by the economic crisis.

“This is undoubtedly shifting the focus to budgets to protect people,” she said. “Sure, we hope this isn’t too long, and that’s why it doesn’t affect our third-quarter economic performance.”

The Indonesian economy showed “very strong recovery and recovery” in the second quarter, he added, adding that the current focus is on ensuring that the highly virulent delta virus is contained.

“At the same time, we can make sure that normalization of economic activity does not come at the expense of increased covids,” she said, adding that a surge in infection could overwhelm the health care system.

Covid spikes in Indonesia

Indonesia is working on a highly infectious delta variant, with daily cases hitting record highs in recent weeks.

According to statistics site Our World in Data, Indonesia’s Covid deaths are skyrocketing, with a seven-day moving average of 3.95 new confirmed deaths per million as of Monday, and one million on June 16. It has increased from 0.69 per person.

In this regard, India’s worst figure in the same statistics reached in May was 3.04 deaths per million.

Vaccination rate

The pace of vaccination in Indonesia is lagging globally, and this trend is predominant in most of Southeast Asia.

As of July 16, about 5.89% of Indonesia’s population has been fully vaccinated against Covid-19, according to Our World in Data.

In comparison, Thailand has fully inoculated almost 5% of the population and the Philippines has reached almost 4%. In Malaysia, another country in the region facing a resurgence, 13.3% of the population is vaccinated. Singapore is a regional outlier and one of the fastest immunization rates in the world, with more than 44% of the population fully vaccinated.

Indonesia Imposed emergency measures earlier this month To curb the rapid increase in infection. According to Mulyani, these restrictions will continue until July 20th, but are being prepared for an extension.

“The president is still discussing exactly how long it will be extended with the cabinet,” she said.

She cited three factors that could affect the extension period: the number of cases of the virus, the ability of the medical facility to handle new infections, and the vaccination rate.

“It’s a good sign that cases tend to decline, especially in the Java region, including Jakarta, and in Bali, vaccination has already … reached almost 80% of the population,” said the minister. Said.

The country currently has more than 150 million vaccinations and village-level troops, police and nurses are being mobilized for that effort, so the race is now “at least 2 million times a day.” She added when she reached the inoculation.

Indonesia balances economy and pandemic support: Finance Minister

Source link Indonesia balances economy and pandemic support: Finance Minister

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