Impact of Fiscal Stimulus on Economic Output and Labor Income in Indonesia

Abstract

The Covid-19 pandemic affected many sectors, one of which was the economic sector, so the government released three fiscal stimulus policy packages to deal with the impact of the Covid-19 pandemic on the economy. Starting on February 25, 2020, for the first volume, then for the second volume on March 21, 2020, and then the third volume of the fiscal stimulus package was released on March 31, 2020. The purpose of this paper is to identify the impact of the fiscal stimulus on economic output and labor income in Indonesia. The research method uses an input-output analysis model in identifying the impact of fiscal stimulus on economic output and labor income. The results of the analysis of the impact of the fiscal stimulus volume 1 show that the increase in fiscal stimulus in 2020 on the output of the Accommodation and Food and Drink Provision sector; Real Estate; and Other Services sectors cause changes in economic output. There are 3 sectors with the largest economic output affected by the increase in fiscal stimulus, namely the Agriculture, Forestry, and Fisheries sectors; Processing industry; and Wholesale and Retail Trade; Car and Motorcycle Repair. The impact of the fiscal stimulus volume 2 in the form of tax incentives, especially on PPh 21 in the Manufacturing Industry, has proven to have an impact on changes in total income in all sectors. The results of the analysis of the impact of fiscal stimulus volume 3 show that the increase in fiscal stimulus in 2020 on the output of the Agriculture, Forestry, and Fisheries sector; Processing industry; and Health Services and Social Activities cause changes in economic output. There are 3 sectors with the largest economic output affected by the increase in fiscal stimulus, namely the Agriculture, Forestry, and Fisheries sectors; Processing industry; and Health and Social Activities.