BANDUNG, unpas.ac.id – Global economic crisis due to Covid-19 Pandemic effected to the decline of stability of financial system. World is predicted to have economic challenge which is more complex and will be the worst recession since The Great Depression (1920-1939).
Based on the urgency, Student’s Community of International Relation (Himpunan Mahasiswa Hubungan Internasional, HIMHI) FISIP Universitas Pasundan holds a national webinar entitled “Economic Strategy: Global Economic Challenges After the Pandemic Crisis”, on Thursday, 21 April 2022.
The webinar presented various keynote speakers including Economic Expert of Universitas Indonesia Faisal H. Basri, S.E., M.A, Political Expert of International Relation of Universitas Padjadjaran Teuku Rezasyah, M.AIR., Ph.D, and Head of Bank Indonesia Representative for West Java, Herawanto.
According to Faisal Basri, Covid-19 pandemic has already discovered the ‘pandora box’, a fact showing that Indonesian economic structure has been weak for so long. This time’s crisis was rather different that one happened in The Great Depression which was triggered by financial sector.
He evaluated that economic problem in Indonesian has been dominated by domestic factor. Therefore, the recovery of economic crisis should better use new thinking thoughts, cross-discipline, and involve all interests.
“Before Covid-19 pandemic hit the world, the heartbeat of Indonesian economy has been weak. Banking has experienced such crisis condition and not reached its best recovery yet. The Incremental Capital Output Ratio (ICOR) was high and the massive exploitation of resources was extractive as well,” he said.
Meanwhile, according to the data in Bank Indonesia, the domestic economic growth was still considered strong in line with the increasing mobility of the people. Until the first quarter of 2022, economic improvement will continue, supported by increased consumption, non-construction investment, and others.
A number of early indicators in March 2022 indicated a recovery in the domestic economy, such as retail sales, consumer expectations, and manufacturing PMI.
“It is also supported by positive performance in various business fields, such as the processing industry, trade, transportation, warehousing, as well as information and communication,” explained the Head of Bank Indonesia Representative for West Java, Herawanto.
Political Expert of International Relation Unpad Teuku Rezasyah said that due to Covid-19 pandemic, Indonesia which is projected as the country with the 4th largest GDP in the world in 2030, has again declined as a lower-middle income country, in line with the decline in gross national income (GNI) per capita.
“The impact can reduce interest in foreign investment, weaken economic and business competitiveness, reduce financing support for world banks and other countries, and affect foreign debt interest,” he said.
Indonesia can implement the strategy of Good Governance, which includes implementation of good governance, implementation of SDGs’ principles, recruitment of leaders at the legislative and executive levels in a transparent manner.
“It is also necessary to improve the quality of life of the people, practice development that is in line with the stability of the country, maintain Indonesia’s good name in the eyes of the world, and be able to mobilize the United Nations to support the democratic process and national development,” he concluded. (Reta)*
