THE Indonesian government has designed an economic stimulus package for the upper middle class with a proposed budget of IDR25 trillion. The stimulus is planned to be provided through discounted airline tickets, hotels, restaurants to dining vouchers via an online application.
According to Garuda Indonesia’s Managing Director Irfan Setiaputra said that in response to the policies included in the National Economic Recovery Program (PEN), Garuda Indonesia was still waiting for detailed plans for their implementation. We are still waiting for the finalization of the details.
Meanwhile Pilarmas Investindo Sekuritas Director of Research and Investment Maximilian Nico Demus said this stimulus could have a significant good impact on the sector in question. At least, post-COVID-19 companies in the sector have additional liquidity.
“But this must be done quickly, measurably and on target so that this positive impetus can be seen in the near future. In addition to providing this stimulus the government must also consider the purchasing power of the people. Because the current economic conditions are also pressing the upper classes, especially those who have businesses that are highly exposed to COVID-19,” he said.
He added, when purchasing power is reduced, is the stimulus provided able to encourage people to spend? Because in the midst of situations and conditions like this, they will tend to do savings.
“As is known, this stimulus is given in the hope that it will boost consumption of the upper class to encourage economic growth. Bearing in mind the Central Bureau of Statistics (BPS) data from September 2019, it showed that the upper classes controlled 45.36% of national consumption,” Nico noted.
He affirmed that this stimulus package is planned to be implemented if the Large-scale social restrictions (PSBB) policy has been relaxed, with the closest target in the second half of this year.
In line with the completion of COVID-19, Nico said the sector that was targeted by the stimulus, which would recover the fastest, was food and beverages such as restaurants. [kontan.co.id/photo special]