Chairman of APVOKASI East Java Calls for Optimism for Economic Recovery Amid the Pandemic

Chairman of APVOKASI East Java Calls for Optimism for Economic Recovery Amid the Pandemic

Dr Ir. Jamhadi, MBA

For almost 2 years, Indonesia and other countries in the world have been affected by the COVID-19 pandemic. In addition to making the world of health confused, the economic sector is also heavily affected. However, the spirit of optimism and productivity in the midst of a pandemic must still be built. This was the invitation of Mr. Jamhadi, as Chairman of the All-Indonesian Vocational Education Alliance (APVOKASI) East Java when he was a speaker in a Public Lecture held by the Postgraduate Program of the Islamic University of Kalimantan (Uniska) Banjarmasin, on Saturday 11 September 2021.

"Let's live life with optimism even though we are facing the covid-19 pandemic. Rest assured that the pandemic will end soon by continuing to carry out activities according to health protocols," said Mr. Jamhadi, who was the speaker carrying the theme 'Optimism of Economic Recovery from World Pandemic Economic Disruption'.

Mr. Jamhadi explained, despite the COVID-19 pandemic, it does not mean that economic activities are paralyzed. In fact, during the COVID-19 pandemic, several economic indicators recorded positive growth.

For example, investment and trade, although the tourism sector is not yet fully normal. This is considered by Jamhadi as the success of the central and regional government programs that have allocated a large portion of the APBN to support economic and health recovery.

The support, said Mr. Jamhadi, is in the form of interest subsidies for micro, small and medium enterprises (MSMEs), amounting to Rp 34.15 trillion, and tax incentives of Rp 28.06 trillion. In addition, the Government has also allocated a budget for guarantees for working capital loans for MSMEs amounting to Rp 6 trillion.

Not only for SMEs. The government also allocates a budget to support corporations, such as providing tax incentives of Rp. 34.95 trillion, placing government funds in banks for restructuring MSME debtors of Rp. 35 trillion.

"The government has also allocated a budget for health recovery efforts amounting to Rp 214.9 trillion and social protection for the community amounting to Rp 187.8 trillion. There are also other social programs, such as the family of hope program, basic food cards, and others," said Mr.Jamhadi, who is on the Advisory Council of the Surabaya City Chamber of Commerce and Industry (KADIN).

Another important thing that Jamhadi mentioned is Indonesia's abundant natural resources (SDA), especially in Kalimantan.

"That needs to be explored by involving local communities," said Mr. Jamhadi.

In the trade sector, Jamhadi conveyed the good news that Indonesia's trade balance in July 2021 experienced a surplus of 2.59 billion US dollars.

Based on trading partner countries, Indonesia experienced the largest surplus with the United States reaching 1.27 billion US dollars, the Philippines 533 million US dollars, and Malaysia 397.5 US dollars.

“And most of the world's exports or 90% are by sea, 40% from Indonesia. Indonesia should be proud because trade contributes positively,” said Mr.Jamhadi.

Another reason why you have to be optimistic in the midst of a pandemic is the realization of investment in Indonesia which has recorded a positive performance.

Jamhadi mentioned that the realization of foreign investment based on location in the period of January-March (TW 1), ranked in the top 5 was West Java with a value of USD 1,445.1 billion with 3,083 projects, DKI Jakarta at USD 1,003,5 out of 2,848 projects, Central Sulawesi. amounting to USD 577.4 with 99 projects, and Riau USD 557.6 from 179 projects.

"The investment realization in 2021 is targeted to reach IDR 858.5 trillion, higher than the 2020 realization target of IDR 817.2 trillion. We are optimistic that investment in Indonesia will recover in 2021, and investment will surge 6.4% after being quite impacted since the Covid-19 pandemic began last year," said Mr. Jamhadi, CEO of PT Tata Bumi Raya.

Thus, Mr. Jamhadi believes that Indonesia's vision to become a developed country in 2045 will be easily achieved. To get Indonesia to become the 5th largest economic power in the world, from a population of around 309 million people, productivity is 52%, per capita income is USD 29,300, 75% urban living in cities, middle income 80% middle class, and business.

73% of the economic pie from the service sector. In addition, it is necessary to be prepared for changes in economic patterns to a disruptive direction, by preparing productive and competitive superior human resources in industry 4.0 to 5.0.

The application of e-commerce has been used to improve the quality of makers and expand market access.

“As many as 50.87%, creative economy companies have implemented e-commerce. The remaining 49.13% have not," said Mr. Jamhadi. (did)

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