25 Jan 2021

UNS Economist on the Restrictions on Community Activities

A total of 23 Municipalities in Central Java are selected to implement the implementation of Restrictions for Community Activities (Pemberlakuan Pembatasan Kegiatan Masyarakat – PPKM), starting of January 11th, 2021 until January 25th. This policy is taken in response to the Central Government policy to limit the public activities in Java and Bali. Responding to this policy, the economist from the Faculty of Economics and Business (FEB) Universitas Sebelas Maret (UNS) Surakarta, Lukman Hakim, Ph.D., states that, this policy will affect people’s economic condition because it will reduce community economic activities.

To uns.ac.id, Lukman stated that during PPKM, there is a limitation for restaurant activities. Dining is only allowed with a maximum of 25% of the dining room capacity, while delivery can be provided during the restaurant operational hours. The policy also limits the operational hours for a shopping center or mall until 19.00 Western Indonesia Time. Lukman Hakim stated that Based on the experience, the community’s transaction and consumption pattern has changed from the beginning of the pandemic. He also thinks that this policy will not bring a significant impact on community economic conditions.

“Based on past experience, the public’s transaction and consumption pattern has changed, since the beginning of pandemic. I think this will not have a significant effect on the economic condition. For instance, a policy in Solo where all culinary transaction that is limited to 7 pm is canceled, and restaurants are allowed to open according to their operation hours while implementing health protocols. This means that there is no difference from the previous condition,” Lukman explained, Saturday (16/1/2021).

According to him, the government will still consider the economic impact of their policies. As long as the availability of staple foods is secured, there will hardly be a problem. Moreover, the government will continue distributing financial aids through various schemes, both through cash and transfer. There is also financial aid for Civil Servants who generate income below IDR 5 million, which will increase community purchasing power.

“Purchasing power is still okay. There is only a time limit. People are still purchasing goods at the designated time by applying health protocol,” he concluded.