How Countries Deal with the Covid-19 Pandemic: A Case Study of Indonesia and Slovakia - Atlantis Press
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Advances in Economics, Business and Management Research, volume 180 Proceedings of the 18th International Symposium on Management (INSYMA 2021) How Countries Deal with the Covid-19 Pandemic: A Case Study of Indonesia and Slovakia Adi Prasetyo Tedjakusuma1,* & Slavomír Rudenko2 1 University of Surabaya, Surabaya, Indonesia 2 Pan-European University, Bratislava, Slovakia * Corresponding author. Email: atedjakusuma@staff.ubaya.ac.id ABSTRACT First reported in China in December 2019, the Covid-19 has now been growing to a very se- vere pandemic with more than 117 million cases worldwide only in one year. To minimize the pandemic impacts on the world’s citizens, any country worldwide must take care of its respective citizens by carrying out various programs and policies to deal with the pandemic. As such, this paper presents what programs and policies have been done by countries worldwide by taking up a case study approach to reflect on the public policies of an emerg- ing economy - Indonesia and an industrialized country - Slovakia. From the findings, it can be concluded that both Indonesia and Slovakia have done their best to mitigate the pandem- ic, although facing several different challenges based on their respective population struc- ture, economic and political specificities. Keywords: Covid-19, pandemic, vaccine, industrialized and emerging economy countries. 1 INTRODUCTION Being the fifth world’s pandemic after the Spanish Flu in 1918 (known as the first First reported on December 31, 2019, in pandemic) that caused 50 million human Wuhan city China, the Covid-19 has been deaths, Asian Flu in 1957 with 1.5 million growing to a very severe pandemic that at- deaths, Hong Kong Flu in 1968 with 1 mil- tacks countries worldwide (Khanna et al lion deaths, Pandemic Flu (H1N1) in 2009 2020). According to Steffens (2020) only with 300,000 deaths does not make the within 30 days, on January 29, 2020, the world able to minimize the impacts of this number of covid-19 cases grew to 6,000, current pandemic (Liu et al 2020), as evi- spread over 18 countries worldwide, and in- dence that, as of March 5, 2021, the number creased around 1,300% to 83,000 cases on of Covid-19 cases reaches 116 million with February 28, 2020. This rapid growth of the 2.5 million deaths (worlddometers 2021). virus has attracted the world’s attention, as Not to mention the socio-economic impacts evidenced that the World Health Organiza- of this pandemic to the world, where global tion (WHO), portrayed as the highest organ- economic growth declined from 2.4% in ization that is responsible for the world’s 2019 to -4.2% in 2020 (OECD 2021), about public health conditions, declared the Covid- 60 million people may be categorized as ex- 19 situation to be a Public Health Emergen- treme poverty, 1.2 billion students are af- cy of International Concern on January 30, fected due to school/campus closures, 1.6 2020, named the virus to be Covid-19 on billion informal workers loss 60% of their February 20, 2020, and declared it as a glob- income, global trade declined by 3%, and al pandemic on March 11, 2020 (Khanna et about 1 billion loss of international tourists al 2020). (UNDP 2020). Copyright © 2021 The Authors. Published by Atlantis Press B.V. This is an open access article distributed under the CC BY-NC 4.0 license -http://creativecommons.org/licenses/by-nc/4.0/. 103
Advances in Economics, Business and Management Research, volume 180 To minimize the pandemic impacts on 1.4 An Industrialized Country the world’s citizens, it is an obligation of countries worldwide to take care of their re- Opposite to an emerging economy, an indus- spective citizens by carrying out various trialized country refers to a country with programs and policies to deal with the pan- high economic growth levels and security demic. Hence, it is interesting to discuss var- evidenced by the countries’ high income per ious programs, rules, or policies carried out capita, income equality, high standard of liv- by different countries. Considering that, this ing, high industrialization level, and promi- paper taking up a case study approach to re- nent infrastructure (Majaski & Boyle 2020) flect on the public policies of an emerging economy - Indonesia and an industrialized country - Slovakia. 2 RESEARCH METHODS The current research applies a descriptive re- 1.1 Covid 19 search method combining primary data of Covid-19 stands for “CO” for Corona, “VI” observations and interviews with residents in for Virus, “D” for disease, and 19 represents both countries and secondary data from the year when it was first identified. It is a newspapers, websites, articles, textbooks, contagious disease caused by the Corona vi- and study centers from the beginning of rus with cough, fever, and shortness of Covid-19 in January 2020 to March 2021. breath and may cause fatality. People can be infected through direct contact with an in- fected person, touching their face, or even 3 RESULT AND DISCUSSION touching surfaces contaminated with the vi- rus (UNICEF, WHO, IFRC 2020). 3.1 Indonesia 1.2 Pandemic Located in Southeast Asia, Indonesia is known as the world’s 10th largest economy Pandemic is one disease spread and rate in terms of purchasing power parity, the classifications that consist of endemic, ep- world’s fourth most populous nation with idemic, and pandemic. As the lowest clas- about 275 million inhabitants, and a member sification, endemic refers to the spread of of the G-20. In Indonesia, the first covid-19 disease only in a particular community of case occurred on March 2, 2020, where a 64- a country. The second comes epidemic, year age mother and her daughter were in- where a disease spreads over many people fected, and a year later, the cases are now within a country, and pandemic comes the 1.3 million with 37,000 deaths (worlddome- highest as it spread over many countries or ters 2020). During the pandemic, Indone- even continents (physiopedia 2021). sia’s economic growth shrank from 4.97% in Q4 of 2019 to 5.32% in Q2 of 2020 but 1.3 An Emerging Economy Country bounced back to - 2.07 in Q4 of the same An emerging economy country refers to an year (tradingeconomics 2021). Programs and economy that is in the process of becoming a policies that have carried out by the Indone- developed economy. They are characterized sian government are as follows: by low production rates, low education level, 3.1.1 Strategic Responses less developed infrastructure, a lower stand- As the Indonesian government’s very first ard of living, limited access to health care response, on March 13, 2 days after the and low income per capita (Banton & West- WHO declared the Covid-19 a pandemic or fall 2020). about ten days after first Indonesia’s case, 104
Advances in Economics, Business and Management Research, volume 180 Indonesian President Joko Widodo estab- card program, a program that prepares Indo- lished Covid-19 Response Acceleration Task nesian to have working skills; basic need Force under Presidential Decree No 7 of card where each individual receives IDR 2020. The Task Force was responsible di- 200,000; Free electricity for 450 KVa cus- rectly to the President and under the Nation- tomers and 50% for using 900 KVa custom- al Agency for Disaster that works with the ers; and low-cost housing subsidy. For tax Ministry of Health, Indonesian Police, Ar- incentive and economic stimulus, the budget my, and regional government. It was estab- is used to exempt income tax (for workers lished to accelerate the handling of Covid-19 with income below IDR 200 million (USD through the collaboration among relevant 13,500)/year; reduce the corporate income ministries and local government. Seeing the tax from 25 to 22%; support MSMEs, one of growing covid-19 cases in Indonesia, in which by delaying MSMEs’ debt payment April, the President declared the pandemic for six months; and support local govern- as a national disaster, while several provin- ment spending. cial governments like Jakarta and East Java implemented a large-scale social restriction 3.1.3 Mobility/Transportation Sector Re- from April- September 2020. Moreover, four sponses months after the establishment, on July 20, Aims to limit people (local people and 2020, the task force was dissolved and re- foreigners) mobility, on March 31, 2020, placed by the Covid-19 Mitigation and Na- The Ministry of Law and Human Rights is- tional Economic Recovery Team led by Co- sued Regulation No 11 of 2020 prohibiting ordinating Minister for Economic Affairs. foreigners from entering Indonesia even un- Compared to the task force that focused til now. While to limit local people's mobili- more on health, the recovery team that still ty, on April 23, 2020, the Ministry of Trans- exists focuses on health and recovers the In- portation issued Regulation no 25 of 2020 donesian economy. that prohibits homecomings, an annual rou- tine activity for Muslims to come home to 3.1.2 Economic Sector Responses their hometown to celebrate Idul Fitri with To stimulate its economy, on March 31, families. To support this policy, the Ministry 2020, the Indonesian government ratified the banned commercial flights from April 24- Government Regulation no 1 Year 2020 in May 7. On May 6, the Ministry allowed lieu of Law that administers additional 2020 commercial flights with strict health proto- State Budget Expenditure, worth IDR 405.1 col, and passengers must have negative PCR trillion = USD 27 billion. The budget was al- or rapid tests. While for local people mobili- located IDR 70 trillion for tax incentives and ty, the Indonesian government never imple- credit for business, IDR 110 billion for so- ments a lockdown policy, but social re- cial protection, IDR 150 trillion for econom- striction because Indonesian people get ic recovery, and IDR 75 billion for income from daily activities like food deliv- healthcare (Sekertariat Kabinet Republik In- ery and online taxi, thus lockdown will stop donesia 2020). For healthcare spending, the Indonesians' income and discourage Indone- budget is used to purchase medical equip- sian economy. The government carried out ment; give additional monthly incentives for two different restrictions: a large-scale so- medical workers that consist of USD 1,000 cial restriction (PSBB) held on April- for a specialist, USD 750 for a general doc- September 2020, and a community activities tor, and USD 50 for a nurse; and give Social restriction (PPKM) held on January- Security Agency subsidy for the public. For February 2021. They were both aimed at social protection, budget amounting to IDR limiting people's mobility but differed in 20 trillion is allocated for pre-employment some ways. 105
Advances in Economics, Business and Management Research, volume 180 3.1.4 Education Sector Responses vaccine on January 13, 2021, where the In- During the pandemic, on March 24, 2020, donesian President was the first person vac- the Ministry of Education and Culture de- cinated. There will be 4 (four) vaccination cided that students must Study From Home phases from January 2021-February 2022 (SFH) and no national examination for pri- (Sekertariat Kabinet Republik Indonesia mary and secondary education. This is quite 2021b). Four vaccination phases are shown a fascinating policy as previously Indone- in Table 1. sia’s national exams are known as the only determinant for primary and secondary stu- Table 1. Four Vaccination Phases in Indonesia dents’ graduation. The SFH policy was then Ph Who When extended until June 2021, known as the end I Healthcare workers and January-April 2021 of primary and secondary education’s aca- equivalent demic year. To support its SFH policy, the II Indonesian Army, Indo- January-April 2021 Ministry gives a monthly internet quota to nesian Police, Public service officers, law en- all students and teachers from primary to forcement officers + university-level. Additionally, in parallel >60 years old people with a policy that prohibits foreigners from III Vulnerable society seg- April 2021-March entering Indonesia, the Ministry of Educa- ments, in terms of their 2022 tion prohibits international students from en- geospatial, social, and economic circumstances tering Indonesia by not issuing new study IV The public and econom- April 2021-Feb 2022 permits since April 9, 2020 until now. ic players 3.1.5 Game Changer (Vaccine) To mitigate the pandemic, the world is 3.2 Slovakia now relying on vaccination, where it is ex- Slovakia’s response to Covid-19 shall be pected that if the majority of the global pop- perceived out of a dual perspective – the na- ulation is vaccinated, herd immunity can be tional one and the one, based on the policies formed. In general, herd immunity refers to and the decisions of the country’s member- indirect protection for those who are not ship in the European Union (EU). immune to the disease, which is formed by The first confirmed Covid-19 case in Slo- having the majority of a population is im- vakia was reported on March 6, 2020. Since mune to a disease. Similar situation in Indo- the infected person did not have a recent nesia, by February 2022, the government in- travel history, it was considered a secondary tends to have vaccinated the majority of its transmission case (UVZSR 2021). On March population (i.e., 70%) to form herd immuni- 7, 2020, the positivity was confirmed for the ty. In light of providing this vaccine to Indo- person above’s son, having returned from nesian people, as of January 12 2021, the In- Venice, Italy, named “patient 0”. Although donesian government has sealed about 329 the first preventive measures were in place million doses of vaccine with 5 (five) vac- in late February 2020, before the first cases cine companies: Sinovac (125 million dos- of positivity were even confirmed (such as es), AstraZeneca (50 million doses), Novav- certain limitations to mass events and gath- ax (50 million doses), Pfizer (50 million erings), the events have taken full speed doses), and Covax AMC (54 million doses). starting from March 12, 2020. On that day, Another 300 million doses to make about the closing of schools and other educational 600 million doses for vaccinating 170 mil- institutions, the suspension of all cross- lion (70% of 270 million Indonesian popula- border transport, and an obligatory 14-day tion) are on the negotiation process (Aldila quarantine were announced. On March 15, 2021). The government has begun the first 2020, a state of emergency was announced 106
Advances in Economics, Business and Management Research, volume 180 for the first time. This was in place until the Czech Republic, has ranked among the June 14, 2020. During this first wave of the countries with the highest Covid-19 deaths pandemic (roughly between March-May per capita globally. 2020), the country has reported considerably The most obvious reasons may be ob- low case numbers, reaching a maximum 7- served in both the political and social day case count average of 60 on April 19, moods. The political climates, on the one 2020, and the death remained low with only hand, and the general public response, on the double digits. other hand, seem to have performed as inter- The situation had changed dramatically connected factors. A new government, es- after the summer months. This was partly tablished in March 2020, amidst the first due to the interdependent trend throughout wave of the pandemic, has marked the limits Europe and their spread across national bor- to the ability to lead a nation through a ders, partly because of a lack of consistency health crisis with having come to power with on the national political scene and rather a pre-pandemic agenda. Even if led with the prolonged inactivity in setting up rules and best intentions, the promises of anti- posing new restrictions. This has led to a corruption policies did not conform with the steep rise of cases between late September- need to reach swift and appropriate public November 2020, following a plateau; even- policy measures to tackle Covid-19 and tually, a gentle decline in case counts after communicate them clearly to the wide pub- the nationwide antigen testing on October 31 lic. As a matter of direct consequence, the and November 1, 2020. The situation in Slo- adherence to the anti-pandemic measures by vakia between October 2020-March 2021 the general public remained lax, even dis- can be considered as a strong second wave missive on a vast range of occasions. In Jan- of Covid-19. A new state of emergency uary 2021, only 27 percent have approved was brought into force from October 1, the actions of the government. Although, in 2020, and since then prolonged three times general terms, the reliance on the political consecutively. Partial lockdowns, combining decisions may undoubtedly fall amidst cri- stricter measures and shorter periods of their ses, such as in case of a pandemic, anywhere relaxation, were gradually introduced be- in the world, the disapproval would not have tween December 2020-March 2021 and still become as striking, would the decisions at the writing time. have been rational, foreseeable, and well- founded. None of the political representation 3.2.1 Political and social implications members (neither the government nor the The Slovak response to Covid-19 un- legislative body) proved to the public that doubtedly is an example of becoming a vic- they knew what they were doing and how tim of its previous success. Having been their decisions will influence their daily live- widely praised for its public policies, the lihoods. The persisting result in the society timeliness and efficiency of applied is a general mistrust and a much lower ob- measures as one of the best performers servance of anti-pandemic measures, given worldwide in the first wave of Covid-19, by several months of lockdowns and an at- right after its outbreak and well into the third mosphere of pandemic fatigue compared to quarter of 2020 (Chubarova et al. 2020), the the first wave back in 2020. failure to act at the right time to slow down the growing case counts after the summer 3.2.2 Economic consequences and in early autumn has brought the country The general economic activity was grave- to almost a collapse of its health care system ly influenced in the first wave between in the beginning of 2021. Throughout Janu- March-May 2020, given the general anti- ary and February 2021, Slovakia, alongside pandemic measures all across the EU and 107
Advances in Economics, Business and Management Research, volume 180 globally. From Q3 of 2020, the economic 3.2.3 Vaccine Rollout indicators have stabilized gradually and Slovakia's vaccination program is based were driven by exports and household con- on the joint vaccine acquisition for the sumptions. Overall, the GDP decrease has whole EU and their distribution into the still recorded -2.4 %, compared to a decline member countries accordingly by the share of 12.1% in Q2. The overall 2020 economic of their population on the EU total popula- performance recorded a decline of 5.8%. tion (approximately 450 million). This ap- This decline was lower than the general EU, proach was jointly decided in June 2020, al- estimated to record - 7.2% (Grigaite et al. lowing the EU to negotiate the purchase on 2021). The predictions for 2021 might seem behalf of its member states. Although it optimistic with an outlook of more than 4%; helped reduce the cost, after the first deliver- the persisting pandemic may change the pic- ies at the end of December 2020, it was clear ture. The positive anticipations are based on that the negotiated amounts of vaccines will a continued economic recovery after Q1 of not be realistic due to severe production ca- 2021 and the ambitious schemes of the Eu- pacity and thus supply problems on the side ropean Economic Recovery Plan (Ministry of basically all relevant producers. of Finance of the SR 2021), so-called Re- Contractually, the EU has secured a total covery and Resilience Facility (RRF), which of up to 2.6 billion doses from 6 different should be worth €672.5 billion and address producers – Pfizer/BioNTech (600 million six different policy areas: doses), Moderna (460 mil.), CureVac (405 the green transition mil.), AstraZeneca (400 mil.), Johnson & digital transformation Johnson/Janssen (400 mil.), and Sanofi/GSK smart, sustainable and inclusive growth (300 mil.). Negotiations with Novavax and and jobs Valneva are also underway (European social and territorial cohesion Commission 2021a). Prioritizing the popula- health and resilience tion of its member countries, the EU plans to provide all the overflow of the vaccine or- policies for the next generation, includ- ders to the COVAX initiative, aimed at en- ing education and skills (European suring equitable access to the vaccines all council 2021). over the world. The vaccination in Slovakia began on The national measures to help people December 26, 2020, when the leading Slo- overcome the economic effects of the pan- vak infectologist, who has also become the demic have included direct economic stimu- lus measures and employment-related face of the official vaccination campaign, measures and strategies (Ministry Work of has received his first Pfizer vaccine shot. So Social Affairs and Family Slovak Republic far, a total of 785.000 doses of vaccines have 2021). Aimed initially as a temporary solu- been applied at the time of writing (March tion to address the first Covid-19 wave, 24, 2021). Approximately 1/3 of the vac- these were already prolonged twice, as even cinated persons have already received their at the time of writing substantial limitations, second shot. imposed by the government as measures to The expected time of 70 percent popula- prevent the spread of the virus persist in tion has been vaccinated to reach herd im- daily economic life and include among oth- munity is in the summer months or at the ers closures of all non-essential businesses, latest until the planned full re-opening of services, education facilities, etc. A periodic school education in September 2021. Cur- testing commitment is imposed upon the rently, as per the above table, registrations to general public. receive a shot are open for the first five groups (korona 2021). 108
Advances in Economics, Business and Management Research, volume 180 Although the prioritized population plied all over the EU, about the fact that a groups are the older generations, senior care person has been vaccinated, contain Covid- residents, and healthcare staff, the overall 19 test results for those who could not get a vaccination strategy specifies 11 different vaccine yet, or information on Covid-19 re- prioritized groups, as follows: covery. The certificate will be issued by the respective national authorities of each mem- Table 2. Eleven vaccination groups in Slovakia ber state as a QR code with a digital signa- ture (European Commission 2021b). It is Group Priority expected that it shall be applied in practice I Healthcare staff, students of medical disciplines, from May/June 2021 to allow at least some actively involved in medical care, other essential workers in healthcare and social services relaxed form of a summer travel season. The II General population above 85 years of age initiative responds to the 2020 summer situa- III General population above 70 years of age tion when the lifting of border restrictions to IV General population above 60 years of age support the economies in countries with V General population above 55 years of age strong tourism sectors has led to the second VI General population above 50 years of age wave of Covid-19, more or less all across VII General population above 45 years of age Europe. VIII General population above 40 years of age IX General population above 35 years of age X General population above 30 years of age 4 CONCLUSION XI Anyone older than 18 This paper presents various Covid-19 miti- gation programs and policies carried out by 3.2.4 The European Digital Green Certifi- Indophysionesia and Slovakia, providing a cate Initiative comparative study of different approaches in Since the first wave of Covid-19, the free the Asian and European perspectives. Simul- movement, being one of the EU’s funda- taneously, the study draws upon mechanisms mental freedoms, was restricted. In certain applied in an emerging economy and an in- phases, and more through bilateral solutions dustrialized country facing the same global rather than in a coordinated way, reaching health crisis the world has not experienced all through the continent, the restrictions and for approx a century. From the above find- limitations in the cross-border movement ings, it can be concluded that both Indonesia were softened and tightened again, reaching and Slovakia have done their best to protect a stage after one year, where basically no their economies and, from a statistical point movement over the borders within Europe is of view, to mitigate the pandemic. In Indo- allowed anymore without a negative Covid- nesia, it is proven that only about 1.3 million 19 test result and/or an obligation of quaran- Indonesians, which is less than 0.5% of the tine. total population, infected the virus, and the In its strive to simplify the patchy rules, government's success stimulates economic based on the public health measures and pol- growth from - 5.32% in Q2 2020 to - 2.07 in icies of each country, the European Com- Q4 of the same year. Slovakia, being a mission has decided, on March 17, 2021, to member of the European Union, has applied create a so-called “Digital Green Certifi- both its national solutions, as well as joint cate”, facilitating cross-border travel and European strategies, having become a coun- aiming towards a gradual return to the com- try which was among the most successful in plete application of the principle of free overcoming the first wave of Covid-19, right movement of persons within the EU. The after its outbreak, to become a bad case sce- certificate will provide a unified proof, ap- nario on the height of the second wave of 109
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