COVID-19 Pandemic: Its Impacts on Economic Growth, Unemployment, and Poverty in Indonesia

Abstract

The first COVID-19 case in Indonesia was discovered in March 2020. Since then, cases of COVID-19 infection have rapidly spread to all regions, albeit at varying intensities. The government responded with a variety of policies, including social restrictions, to prevent the spread of COVID-19 cases. This policy may eventually reduce the pandemic, but it has significant economic consequences. One of them is a recession in early to mid-2021. Will it have an effect on poverty and unemployment as well? This research aims to provide an answer to this question. The study’s goal is to determine how COVID-19 affects economic growth, unemployment, and poverty. Analytical methods used in this study include quadrant analysis and path analysis. According to quadrant analysis, COVID-19 has an impact on both economic growth and unemployment, whereas path analysis shows that COVID-19 has a negative impact on both economic growth and poverty.