UNS — Faculty of Economics and Business (FEB) Universitas Sebelas Maret (UNS) Surakarta held a Webinar on ‘Fiscal Policy in National Economic Recovery’ in a hybrid event with an offline meeting held in Konimex Hall FEB UNS and broadcast through the Zoom Cloud Meeting application on Wednesday (1/12/2021). Three speakers were invited to discuss fiscal policies in National Economic Recovery (Pemulihan Ekonomi Nasional – PEN): Dr. Agus Eko Nugroho, SE, M.Econ., Ubaidi Socheh Hamidi, SE, MM., and Malik Cahyadin, SE, M.Si.
Dr. Agus Eko Nugroho, SE, M.Econ, the Chief of Economic research Center (P2E) LIPI, explained that PEN realization has a significant impact in strengthening the financial resilience of Micro, Small, and Medium Enterprises (MSMEs) after the negative effect of Covid-19 pandemic that occurs since 2020. PEN realization also ensures a good implementation of social security and health services. Dr. Agus added that social security or social aids could increase the aggregate demands negatively affected by the limitation on people’s activities during the pandemic.
The adverse impact of Covid-19 that leads to the drop of sales of almost 50% to 75% and higher for MSMEs is the reason behind PEN, which is found to lure almost all financial institutions to provide credit restructuration for MSME who also received tax incentives and assistance to improve their access toward digitalization. Dr. Agus Eko argued that the economic equilibrium would not be able to return naturally in the short period due to the presence of permanent effects, such as the changes in private investment in digital equipment and people’s adoption of digital technology.
“Therefore, strong and measurable fiscal expansion is an appropriate step to recover our economy,” he concluded.
Ubaidi Socheh Hamidi, SE, MM., the Chief of Center for Income and Expenditure Budget Policy Kemenkeu RI, supported the explanation. As reported by feb.uns.ac.id, Ubaidi Socheh is optimistic that economic recovery could be implemented because, in Quarter III-2021, the national economy demonstrated positive growth (3.51%). “Economic recovery will continue with growth performance targeted to strengthen in Quarter IV,” he added.
The positive results from PEN implementation are expected to continue to 2022. Malik Cahyadin, SE, M.Si., as a faculty member of FEB UNS, also supported the implementation of PEN program through the implementation of the Import Substitution Industrialization (ISI) strategy for MSMEs that collaborate with SOEs. Global Value Chain (GSC) strategy for priority industries with global competitiveness also needs to be supported, including selected SOEs. Malik Cahyadin also explained that taxes for industries benefitted from the pandemic, and the digital industry could also support the recovery. “The integration between NIK-NPWP and Tax-Zakat could be applied gradually,” he stated.
Synergy and collaboration between fiscal and monetary authorities need to be continued, accompanied by optimization of Information and Communication Technology, and business digitalization for MSMEs. Humas UNS
Reporter: Alinda Hardiantoro
Editor: Dwi Hastuti