Observers said about Rp. 500 billion in postage subsidies from the government

JAKARTA, KOMPAS.com – Universitas Airlangga economic observer, Rahma Gafmi, assesses the policy of providing subsidies for Postal fee (postage) on Harbolnas 2021 can be a momentum to revive the economy.

Rahma said this policy could strengthen people’s purchasing power and encourage sales of consumer goods, which had been sluggish due to reduced demand.

“With the increase in people’s purchasing power, producers can increase their productivity so that the business cycle runs normally. The economy can revive,” he said. Among, Sunday (11/4/2021).

He added that this policy could also be a stimulus for business actors to restart business activities and a solution to stimulating economic activity which was hampered by the problem of limiting mobility.

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“The term is provoked to revive the economy. However, from the side of the government budget, with the presence of tax levies on producers, it does not put too much pressure on the widening fiscal deficit,” said Rahma.

He believes this policy will trigger consumption growth during Ramadan, especially since the government has also formulated other stimulus programs such as ensuring that private parties pay holiday allowances (THR) to employees.

In addition, the government is also certain to distribute 10 kilograms of rice social assistance, accelerate the realization of social protection benefits, and guarantee business credit for the hotel, restaurant and cafe sector.

“Various government efforts to support the welfare of the people are still guaranteed and do not get worse, because we know that this pandemic has had a tremendous effect on increasing poverty,” said Rahma.

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Previously, the government prepared IDR 500 billion to subsidize shipping costs from online purchases of goods at Harbolnas which took place on D-10 or D-5 ahead of Eid al-Fitr 1422 Hijriah.

Coordinating Minister for Economic Affairs Airlangga Hartarto After a plenary cabinet session at the State Palace, Jakarta, Wednesday (7/4/2021), he said that the stimulus was to increase public consumption and encourage online sales of domestic products.

Airlangga said this stimulus was President Jokowi’s mandate to maintain the trend of economic recovery while continuing to restore public health aspects from the Covid-19 pandemic.

Airlangga revealed that the Harbolnas would be held on D-10 and D-5 Eid this year.

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“The government will also encourage Harbolnas, where on D-10 and D-15, Harbolnas online are aimed at national products,” said Airlangga when giving a presentation on the results of the cabinet plenary session as quoted from the Cabinet Secretariat Youtube account.

Airlangga said the government would provide postage subsidies at the Harbolnas celebration. The value of the subsidy that will be disbursed reaches Rp. 500 billion.

“The government will provide postage subsidies so that the government has prepared a budget of Rp. 500 billion,” he said.

Overall, the government has five programs to boost consumption during the Ramadan and Eid al-Fitr periods, in addition to encouraging the implementation of Harbolnas.

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The first program is related to the payment of holiday allowances (THR) made by business actors to their employees.

From this program, it is estimated that funds that can enter the market will reach Rp 215 trillion.
The second program is subsidized for rice social assistance during Ramadan.

The social assistance is channeled from Bulog, which is budgeted to receive funds of Rp. 2 trillion to buy grain from farmers.

In addition, the government will also accelerate the distribution of social protection to the public with a budget of Rp. 14.12 trillion.

“The hope is that the GDP (Gross Domestic Product) in the second quarter can be positive,” said Airlangga.

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