Abstract

The COVID-19 pandemic is a serious problem for the economies of many countries, including Indonesia. Low specimen testing capacity, causing uncontrolled transmission. The Indonesian economy is faced with a recession. The economic vulnerability to the COVID-19 pandemic needs attention as a basis for making the right policies. This study aims to build an economic vulnerability index to COVID-19 and map the vulnerability of the regional economy to form priority groups for economic policies. This index consists of two dimensions: exposure and shock. It was found that the score for Indonesia’s economic vulnerability index to COVID-19 reached 56,58. Provinces in Java Island tend to have high economic vulnerability, especially DKI Jakarta. Furthermore, the economic vulnerability index has a significant negative relationship with the GRDP growth in the 2nd quarter of 2020. Through quadrant analysis, four priority groups were obtained. Priority I consist of DKI Jakarta, Banten, West Java, Bali and DI Yogyakarta which need more attention because of high possibility of shocks and structurally more exposed to the economic impacts caused by the COVID-19 pandemic shocks.

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