Skip to main content Accessibility help
×
Hostname: page-component-77c89778f8-m8s7h Total loading time: 0 Render date: 2024-07-23T19:07:49.522Z Has data issue: false hasContentIssue false

2 - Indonesia and the COVID-19 Crisis: A Light at the end of the Tunnel?

Published online by Cambridge University Press:  09 October 2021

Get access

Summary

Abstract

The COVID-19 crisis is one of the most serious challenges in Indonesia's 75-year history. It is testing all aspects of government and society, from health and social security systems to macroeconomic management and administrative capacity. The country's health system has struggled, owing to past underinvestment and inconsistent management during the crisis. Macroeconomic management has been more surefooted, although the fiscal stimulus has been comparatively small and initially slow to reach its intended recipients. The social impacts are still unfolding, reversing the past decades of declining poverty and unemployment. Nevertheless, through a combination of good luck and effective management, the overall economic impact on Indonesia is considerably less than most of its middle income Asian neighbours. The economic decline in 2020 is also much smaller than that experienced during the Asian financial crisis. Predictably, there have been substantial subnational variations in socioeconomic impacts, ranging from the steep decline in tourism-dependent Bali to much smaller impacts in more remote, lightly settled regions. There is so far little evidence that the Widodo administration will change policy directions in any fundamental way as a result of the crisis.

Introduction

The COVID-19 crisis is a defining event for the world. It is the most serious pandemic in a century, and the sharpest peacetime global economic contraction in 90 years. It is truly global, it was unanticipated (at least in the form that it took), and it is everywhere testing all aspects of government and society, from macroeconomic management and health systems to societal resilience and personal wellbeing. It is also occurring at a troubled time for the world, with the rise of populism, authoritarian leaders, democratic regression and a serious dispute between the world's two economic superpowers, and a concomitant weakening of cooperative global institutions and coordinated action to address pressing global economic, political and environmental challenges.

The COVID-19 crisis is also a perfect illustration of the phenomenon of John Kay and Mervyn King's (2020) ‘radical uncertainty’, of ‘unknown unknown’ events that are inherently unpredictable. Writing in the midst of the crisis (October 2020), with no immediate end in prospect, is a perilous exercise.

Type
Chapter
Information
Economic Dimensions of Covid-19 in Indonesia
Responding to the Crisis
, pp. 5 - 23
Publisher: ISEAS–Yusof Ishak Institute
Print publication year: 2021

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×