JAKARTA, JULY 27, 2020 – The Covid-19 pandemic has sent a shock wave to not only the health sector but also to the economic and social life with the implication of slower economic growth in the first semester of 2020. PT Sarana Multi Infrastruktur (“PT SMI”) has analysed the impact of Covid-19 pandemic on the economy at the national and regional levels as well as the economic sectors that will take the lead during the new normal era.
Finance Minister Sri Mulyani Indrawati in her remarks during PT SMI’s 2020 Economic Update Webinar: “The State of the Indonesian Economy in the New Normal Era” held at the Ministry of Finance, on Monday, July 27, 2020, said that PT SMI has made an economic analysis on the impact of Covid-19 on the economy at the national and regional levels. The analysis found the information & communication sector resilience to the Covid-19 pandemic. In addition to information & communication, other economic sectors that will perform well during the new normal era are financial services & insurance, construction, and processing industry.
The findings of the PT SMI Economic Research Division can be one of the considerations for the government in formulating policies in the framework of the National Economic Recovery (“PEN”) program. The Finance Minister emphasizes that the government with all the policy tools in hand is maximizing its effort to mitigate the impact of Covid-19 and to recover the economy aimed at creating jobs to enhance the consumers’ purchasing power. What it takes to achieve this goal are labour-intensive economic recovery programs that PT SMI can contribute to.
The analysis of PT SMI’s Economic Research Division showed the shift of the leading economic sectors in Java during the pre-pandemic and post-pandemic period. In the DKI Jakarta Province, there will be no shift of leading economic sectors from the pre-pandemic to the new normal era, whereas other provinces in Java will experience the shift of economic sectors that will bring the information & communication sector to the lead position in the new normal era. Meanwhile, in Banten Province, the construction and real estate sector will remain the leading sectors in the new era. The shift to information & communication sector in the new normal era implies the importance of the digitalization of the economy to accelerate the economic recovery in the new normal era, according to PT SMI Chief Economist I Kadek Dian Sutrisna Artha.
The Covid-19 pandemic has shocked the economy globally. In Indonesia, the economic growth in the first quarter dipped dramatically to 2.97% (yoy) in 2020 from 5,07% in the 1st quarter last year. The economic slowdown is predicted to continue in the second quarter of 2020. The analysis of PT SMI’s Economic Research Division showed that Bali and Yogyakarta Special Region experience the greatest economic decline compared to other provinces in Indonesia given to the major role the tourism sector plays in their economies. Since the pandemic, the government imposed restrictions on mobility, which resulted in a significant decline in the number of tourists. Other areas that were also significantly affected by the Covid-19 outbreak were those that were dependent on natural resources, such as East Kalimantan, Central Kalimantan, South Sulawesi, North Maluku, Gorontalo, Lampung, and Jambi.
President Director of PT SMI Edwin Syahruzad confirmed the company’s commitment in supporting the Government’s PEN program. Edwin said, “PT SMI to maintain its commitment as the catalyst of the national infrastructure development as well as the trusted promoter of sustainable development that bring positive impact to the economy, society, and environment. PT SMI will continue to provide financial support for various infrastructure in Indonesia that will contribute to job creation.”
Until May 2020, PT SMI has channelled financing to various infrastructure projects that contribute to positive impact on the economy as well as on job creation.
About PT Sarana Multi Infrastruktur (Persero)
PT Sarana Multi Infrastruktur (Persero) (“PT SMI”) was founded on February 26, 2009, as a State-Owned Enterprise non-bank financial institution under Finance Ministry with the mandate as the catalyst to accelerate the infrastructure development.
PT SMI provide many unique functions and products/features to support the acceleration of infrastructure development which not only functioning as an infrastructure financing but also as an enabler through the implementation of Public Private Partnership scheme that bring together various financial institutions both private and multilateral. With its regional loan product, PT SMI actively support the implementation of PPP and enable the acceleration of regional infrastructure development.
PT SMI run on three business pillars, namely (1) Financing and Investment, that financing infrastructure projects, (2) Consulting Services to provide solution to the increasing demand of professionals and experts in infrastructure sector, (3) Project Development to help Person in Charge of the Cooperation Project (PJPK) to prepare the infrastructure project.
For further inquiries:
Head of Corporate Secretary
PT Sarana Multi Infrastruktur (Persero)
Tel: +6221 8082 5288
Fax.: +6221 8082 5258
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