Covid-19 resurgence poses risk to revival of Indonesian economy

Medical workers prepare to administer the Covid-19 vaccine during a drive-through vaccination service in Nusa Dua, Bali, on March 1, 2021. - AFP

JAKARTA (The Jakarta Post/ANN): Bringing the budget deficit back down to below 3 per cent of the gross domestic product (GDP) may prove challenging for the government as efforts to contain the coronavirus could leave an ugly mark on the state balance sheet.

A surge in Covid-19 cases would lead to more people getting infected and filling up hospitals across Indonesia and may compel the government to tighten mobility restrictions. Additional curbs would hurt business sales and could cause job losses, forcing the government to disburse more stimulus funds to buoy economic activity.