COVID-19 IMPACT ON FINANCIAL MANAGEMENT
The influence of covid-19 on the economy of the community Covid-19 had a negative impact on the economy of the people in Indonesia. The economic system is a system used by a country to allocate its resources to both individuals and organizations in the country. To minimize the spread of the corona virus in Indonesia, the government implemented a social distancing policy. Social distancing is a condition where people are asked to avoid the crowds of people. In Indonesia also applies PSBB (Large-Scale Social Restrictions) such restrictions include the convenience of lecture schools and work places (work from home) restrictions on religious social activities, restrictions on public facilities, restrictions on socio-cultural activities, restrictions on modes of transportation and restrictions on other activities that invite many people . The existence of this policy is expected by the community to remain at home and carry out all activities at home. This has hampered the economic system of the people. The following are the effects of the collapse of the co-19 pandemic for the Indonesian economy: 1. Widespread layoffs (termination of employment) This pandemic has brought widespread misery to formal and informal workers. The government notes that at least more than 1.5 million workers have been laid off and laid off. Of these figures 90% were laid off and the remaining 10% affected by layoffs. The reason is because of weak market demand, including due to the PSBB policy and then the limitations to pay for labor salaries which is the highest component of company costs. 2. PMI Manufacturing Contraction World manufacturing industry activity experienced a very deep decline throughout April 2020 amid the co-19 pandemic. The purchasing managers ′ index (PMI) during the fourth month of the year dipped to a level of 27.5 from 45.3 in March 2020. This figure is the lowest in national history. The decline is the worst peak of the manufacturing sector in the country and is expected to continue in the future. 3. Import Performance Import performance also experienced a very drastic decline, imports in May 2020 decreased 42.20 percent on an annual basis to US $ 8.44 billion compared to the same period the previous year, which was valued at US $ 14.61 billion. Imports in May 2020, which reached US $ 8.4 billion, were the lowest since 2009. 4. Influence of inflation Bank Indonesia estimates that inflation in May 2020 will reach 0.09% month-on-month while annual inflation will reach 2.21% but this inflation will be lower compared to the previous year’s Ramadan or Eid. Where in 2019 the month of Ramdhan inflation before Eid reached 0.68% after Eid Al-Fitr 0.55% the impact of Covid-19 would of course reduce demand from the public for goods and services if in the previous year we in the month of Ramadan break fasting at home or in the restaurant as well. it has also spent a lot this year because the demand for covi-19 was low. 5. Cancellation of domestic and international flights The Ministry of Transportation noted co-19 helped subvert the aviation industry. There are at least more than 12,703 flights at 15 airports in Indonesia canceled during January-March, with details of 11,680 for domestic flights and 1,023 for international flights. Many airports in Indonesia have been temporarily closed, for example, the supadio international airport due to lack of passengers and a massive deficit. 6. The decreasing number of foreign tourists to the Ministry of tourism and the creative economy, wishnutama kusubandio said tourism is the first and most influential factor for the co-19 pandemic. Tourist visits by foreign tourists (tourists) have an enormous effect, massive tourist arrivals dropped by more than 7 thousand foreign tourists per day. Foreign tourist visits are generally dominated by tourists from China. This reduction can be expected considering the steps of the Indonesian government and also the governments of potential foreign donors to Indonesia who have decided to close access to and out of the country in order to prevent the spread of covid-19