The arrival of COVID-19 has created unprecedented challenges for the world. In Indonesia, the coronavirus has infected more than a million people since the first confirmed cases in March 2020 and tens of thousands have died. Coronavirus curbs on the economy and society continue to have a shocking impact on human development. After years of progress, poverty is rising again. One in ten people in Indonesia today are living below the national poverty line. Child poverty may increase significantly. The social impact would have been far worse had it not been for government assistance.
In response to the crisis, the government of Indonesia has introduced a massive fiscal stimulus package through the National Economic Recovery (PEN) program. Indonesia ranks among the top five countries in the Asia Pacific region in terms of the total amount devoted to combatting COVID-19 (ADB, 2021). In 2020 the government allocated IDR 695.2 trillion (approximately US$ 49 billion) to the program. With the crisis still unfolding, the government announced a budget of IDR 699.43 trillion (approximately US$ 49.3 billion) in February 2021 for the continuation of the PEN program this year (Kemenkeu, 2021).
Indonesia has continued to invest in strengthening its social protection programs to respond to the crisis. These have been expanded to protect today’s poor against major shocks as well as a growing number of low- and middle-income earners who have become vulnerable and are at risk of becoming tomorrow’s poor. Small businesses, too, are receiving assistance as they continue to contend with a contracting economy and public health restrictions.
To assess the impact of COVID-19 on Indonesia’s households and to inform government policies, UNICEF, UNDP, Prospera, the SMERU Research Institute and the National Statistics Office (BPS) collaborated on a ground-breaking survey in October-November 2020. The survey included 12,216 nationally representative households across all 34 provinces. It was the largest survey of the impact of COVID-19 so far and focused on children and vulnerable groups. It was based on face-to-face interviews with households interviewed by National Statistics Office as part of its National Socio-Economic Survey 2019 (SUSENAS). The survey and analyses were undertaken in close collaboration with the Indonesian government.
Also, most of the industries were shutdown to lower mobility. A potential benefit of these measures is the reduction of pollution by the industrial and transportation sector, improving urban sustainability
By March 2020, the average global road haulage activity in regions with lockdowns had declined to almost 50% of the 2019 standard. Air travel has almost completely stopped in certain regions with aviation activity decreasing by over 90% in some European countries.
Air activity in China recovered slightly from a low in late February, with lockdown measures somewhat eased. Nevertheless, as lockdowns spread, by the end of Q1 2020, global aviation activity decreased by a staggering 60%.
In the beginning, the exponential growth of the global epidemic directly contributed to considerable confusion about instability in the financial and capital markets. Secondly, countries have strictly regulated human movement and transport to monitor the growth of the epidemic and significantly reduced economic activity, putting pressure on both consumer and productive economic activity.
The assessment of energy and financial efficiency is usually connected to environmental pollution research. Green practices at a national level, the inclusion of renewable energy, regulatory pressure and the sustainable use of natural resources are associated with environmental sustainability
The home isolation and pop-up confinement services in countries that have experienced major impacts of COVID-19 are standard practise, as hospitals are given priority to the most serious cases. In some countries, hotels are being used to isolate travellers for at least two weeks on entry. In several countries, such quarantine measures have resulted in consumers increasing their domestic online shopping activity that has increased domestic waste. In addition, food bought online is packaged, so inorganic waste has also increased. Medical waste has also increased.
The impact of COVID-19 will continue throughout 2021 and beyond. However, the pace of support must continue to boost child and family wellbeing. Indonesia’s development partners stand ready to assist in this endeavour.