Imperatives for the Recovery of Indonesia’s Education, Labor and SME Sectors Post COVID-19

Abstract

COVID-19 pandemic has unleashed a crisis of unprecedented proportions, devastated economies, fueled unemployment across all economic sectors, drastically decreased investment, and plunged the Indonesian economy toward a recession. Government response has been swift and wide-ranging in its efforts to mitigate the impact of the crisis on the economy and vulnerable sections of society. The article proposes two broad based initiatives, inter alia, containing COVID-19 impact during emergency response phase in the short term, and tackling structural problems in the long term to achieve sustained economic transformation and inclusive development. The initiatives include strengthening and widening the scope of government programs already in place to support business and society in areas of education, labor and employment, and SME trade and investment. The thrust of the pathways underscore the importance of accelerating the development of national information highway and the ASEAN connectivity though ASEAN digitalization integration framework action plan (2019-2025) that are crucial for mainstreaming the adoption and deployment of digitalization in the economy and society in business processes and government policies, practices and procedures that ae pre requisites for the future industry revolution 4.0 economy and society.

Keywords: COVID-19 pandemic, GVCs, SMEs, economic zones, Industrial parks

JEL Classification: A30, E02, E24, E26