Entering the beginning of 2020, optimism about economic developments, both global and domestic, can be seen from positive changes in several macroeconomic indicators. However, the emergence of the Corona Virus Disease 2019 (COVID-19) outbreak and the massive spread of the virus had a disruptive impact on all economic aspects.

The COVID-19 crisis situation is predicted to last until the end of 2020 so that the global economy is expected to recover in 2021. The same thing is predicted to occur in Indonesia, where after the end of COVID-19, economic growth in 2021 is predicted to increase to 5.2 %-5.6 %. The COVID-19 pandemic can instead be used as a momentum to improve all aspects of state administration in order to accelerate growth and achieve economic transformation.


Real Sector

"Enlarging Investment to Boost Real Sector Productivity"

As a result of the massive spread of COVID-19, all sectors in the economy in Indonesia experienced a significant decline in performance, including the real sector and were accompanied by declining levels of investment in Indonesia. This is caused by restrictions on economic activities that reduce trade and export-import activities, especially those involving COVID-19 epicenter countries such as the People's Republic of China (PRC). On the other hand, Chinese investment has a proportion of 17% of total foreign investment in Indonesia. After the COVID-19 pandemic ended, the government encouraged the Indonesia Investment Coordinating Board to increase investment to reinvigorate the Indonesian economy. So, how can Indonesia be able to increase investment to increase productivity in the real sector to improve economic conditions after the COVID-19 pandemic?

Monetary and Financial Sector

"Integrating Digital and Financial Ecosystem to Maintain Monetary and Financial Stability"

The massive spread of COVID-19 made the monetary and financial sector quite shaken, which was marked by the decline in the Composite Stock Price Index (CSPI) and the weakening of the rupiah against the dollar. On the other hand, during the COVID-19 pandemic, Bank Indonesia noted that there were surges in digital financial transactions, as a result of the Large-Scale Social Restrictions policy. Furthermore, in the future some distribution of programs and economic incentives from the government will be channeled on a non-cash basis, so an inclusive integration between the financial sector and the digitization process will be needed to maintain financial system stability. So, how to integrate the financial sector with digitalization in order to maintain and strengthen the stability of Indonesia's financial system after the COVID-19 pandemic?

Fiscal Sector

"Fiscal Reform to Strengthen National Economic Resilience"

Responding to the impact of $COVID -19$, the government has issued Government Regulation in Lieu of Law No. 1 Year 2020 concerning state financial policies and financial system stability to increase the flexibility of the APBN in dealing with the effects of COVID-19. Through this regulation, the Ministry of Finance is focusing on spending and budget financing to overcome the impact of COVID-19. Furthermore, after the pandemic ended, President Joko Widodo requested that the fiscal policy for the year 2021 to be designed for strengthening the resilience of national economy that is able to overcome the various risks that arise while protecting the country's economy from turmoil and global economic uncertainty, including as a result of the outbreak of COVID-19. So, what are the appropriate and necessary steps for fiscal reform to strengthen the Indonesian economy after the COVID-19 pandemic?