On 6 January 2021, Airlangga Hartarto, Chairman of the Committee for the Handling of the COVID-19 Pandemic and National Economic Recovery (KPC-PEN), announced that a number of regions across the densely populated islands of Java and Bali are to impose tougher social and business restrictions between 11 and 25 January 2021.
These restrictions are an effort to obstruct the rising number of COVID-19 infections ahead of the start of the country’s vaccine program.
This decision is based on Instruction of the Minister of Domestic Affairs No. 1 of 2021 concerning the Enforcement of Activity Restrictions to Control the Spread of COVID-19 (signed on 6 January 2021).
The restrictions have a big impact on social life and business activity. In fact, for the Indonesian economy it is very negative news, indeed. And, it will certainly not help to push the country out of the ongoing economic recession (we assume that negative economic growth, which started in Q2-2020 for Indonesia, persists into Q4-2020, and quite possibly also into Q1-2021).