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1. - The government uses a counter-cyclical fiscal policy.

Counter-cyclical policy refers


to a policy where in a recession, the government intervenes through fiscal stimulus
with a focus on health, social protection, support for the business world which is
integrated in the national economic recovery program (PEN). Counter-cyclical policy
aims to encourage aggregate demand and economic activity that absorbs labor in
order to improve economic conditions. In a crisis situation, the government must
intervene primarily for health spending. The government cannot delay until it has
sufficient state revenues. Important and priority expenditures related to health
facilities, investment in health human resources including support for households and
businesses must be executed as soon as possible during this pandemic. Delaying these
purchases will only result in greater costs in the future. In the short term, public debt
can stimulate the aggregate demand needed during a crisis that drives economic
growth. It is hoped that further economic growth can increase taxes which increase
the solvency of the government.
- To restore employment stability, the Government provides social assistance funds to
the community. The hope is that this assistance can increase people's purchasing
power so they don't fall into the economy and provide various trainings for business
actors or UMKM, so that they can innovate and support to add selling value to the
products they sell.
2. - Maintain volatile food inflation in the range of 3.0% - 5.0%. Efforts are made to
strengthen the four strategic pillars which include Price Affordability, Supply
Availability, Smooth Distribution, and Effective Communication (4K) during the
Covid pandemic -19, including maintaining supply availability and smooth
distribution ahead of National Religious Holidays (HBKN). Strategy implementation
is focused on maintaining continuous supply over time and smooth distribution
between regions, among others through the use of information technology and
strengthening interregional cooperation.;
- Strengthening the coordination of the Central and Regional Governments in
controlling inflation through holding the 2021 Inflation Control National Coordination
Meeting (Rakornas) with the theme “Encouraging the Increasing Role of Food
MSMEs through Optimizing Digitalization to Support Economic Recovery and Food
Price Stability";
- Strengthening the synergy between Ministries/Agencies with the support of the
Regional Government in order to make the TPIP 2021 work program a success;
- Strengthening national food security by increasing production, among others
through the food estate program, as well as maintaining smooth distribution through
optimization of infrastructure and efforts to handle the impact of natural disasters; and
- Maintain the availability of Government Rice Reserves in the context of the Supply
Availability and Price Stabilization program to support the implementation of the
Implementation of Community Activity Restrictions.
3. The deficit situation where the value of imports exceeds the value of exports is one of
the causes of depreciation. Foreign trade is carried out by paying the domestic
currency of the selling party, so that if we export more than we import, our currency
will appreciate.

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