news     July 10, 2020

Restoring Economy due to Pandemic, West Java Provincial Government Borrows Rp1.4 Trillion to SMI

The West Java Provincial Government has decided to borrow Rp1.4 trillion from PT Sarana Multi Infrastruktur or SMI (Persero). This regional loan is one of the steps to restore the West Java economy affected by the Covid-19 pandemic.

Governor Ridwan Kamil said, economic growth in West Java was supported by four sectors, namely exports, purchasing power, investment, and government spending. The Covid-19 pandemic turned the export, investment and purchasing power sectors out.

Therefore, he said, West Java hopes only on government spending if it wants the economy to really recover.

“Well, if government spending goes out too, our economy will stop, minus, and return to the song will be difficult,” said the man who is familiarly called Kang Emil in the iNews Leaders Talk Webinar entitled “West Java Economic Recovery during New Normal”, Thursday (9/7) / 2020).

The former Mayor of Bandung said, West Java Provincial Government is currently struggling hard so that economic growth can be in orange. It is targeted that the economy can grow 2-3 percent.

Emil explained, when exports, purchasing power and investment stopped, it was necessary to think of ways for the economy to move. One way is to do regional loans.

“So the conclusion is we have to borrow money. We are doing a regional loan of Rp1.4 trillion to SMI. The funds are to return to Bogor, to Karawang, which was cut because of Covid-19, for refocusing,” he said.

Besides Emil, present as resource persons in this webinar are Bogor Mayor Bima Arya, Kerawang Regent Cellica Nurrachadiana, and economic observer Acuviarta Kartabi.

Cellica said, the Covid-19 pandemic had hit the economic sectors in Karawang. The most affected sector is industry. One impact, 1,276 employees affected by layoffs (layoffs) and another 50,000 were laid off with a salary of 50 percent.

However, not all were hit. The agricultural sector is among the most stable. In addition, marine and fisheries are also relatively unaffected. “It was down, but now it is stable again,” he said.


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