EXPLANATION TEXT
Corona virus or
Covid-19 is a form of collection of viruses which is capable of carrying out an
infection of the entire respiratory system. Then the virus itself will cause
mild respiratory infections such as flu. Found in the Wuhan City area, China
which is at the end of December 2019. The virus itself will transmit very
quickly and will also be able to spread to other regions in China and now in
March 2020 it has entered Indonesian territory.
The corona virus is very bad in
many aspects, especially in international trade. The outbreak of the corona
virus (Covid-19) since the end of December 2019 has hampered international
trade traffic. Imagine, the corona virus even spread to various parts of the
world quickly. An increase in the price of a number of food commodities
occurred due to delays in imports due to the Covid-19 discourse.
The global economy could shrink
by one percent by 2020 due to the new Corona Virus pandemic or COVID-19, and
could contract further if restrictions on economic activity are extended
without an adequate fiscal response.
China is the world's biggest exporter. Indonesia often imports from China and China is one of Indonesia's largest trading partners.
The presence of the Corona virus in China has caused Chinese trade to deteriorate.
This has an effect on world trade, including in Indonesia. Declining demand for
raw materials from China such as coal and palm oil will disrupt the export sector in Indonesia,
which
can cause a decrease in commodity and mining product prices.
Trade sector tax revenues also declined even though trade had the second largest contribution
to tax revenue. Based on data from the Central Statistics Agency (BPS), oil and gas and non-oil exports
have decreased due to China being the largest importer of crude oil. In addition, the spread of the Corona
virus also resulted in a decrease in production in China, even though China became the center of world
goods production. If China experiences a decrease in production, the global supply chain will be disrupted
and can disrupt the production process that requires raw materials from China. Indonesia is also very
dependent on raw materials from China, especially plastic raw materials, textile raw materials, electronic
parts, computers and furniture.
Indonesia is one of the countries that enforces travel bans to and from China to reduce the spread
of the Corona virus. This ban caused a number of airlines to cancel their flights and some airlines were forced
to continue operating even though the majority of the seats were empty to fulfill passenger rights.
Many consumers are delaying booking their holiday tickets because of the increasingly widespread Corona virus
spread. This situation caused the government to act by giving discounts to tourists for the destinations of Denpasar,
Batam, Bintan, Manado, Yogyakarta, Labuan Bajo, Belitung, Lombok, Lake Toba and Malang. In Europe also
applies rules where airlines must use around 80 percent of flight slots operating outside the European continent so
as not to lose slots to competitors. Not only in Indonesia that limits travel to China, but other countries such as Italy,
China, Singapore, Russia, Australia and other countries also apply the same thing.