FKP hosted by Indonesian Regional Science Association (IRSA) with Mansur Afifi (Universitas Mataram), Ludia Theresia Wambrauw, Josina Waromi (Universitas Negeri Papua), Wellem A. Teniwut (Politeknik Perikanan Negeri Tual), and D.S. Priyarsono (IRSA). Thursday, 11 February 2021.

KEY POINTS:

1. Large-scale social restrictions (PSBB) have reduced people’s mobility and productivity. Layoffs of workers have resulted in reduced purchasing power as a result of the decrease in income. Since the first quarter of 2020, several economic indicators in West Nusa Tenggara have shown slower growth performance. The government needs to extend social assistance until the pandemic ends and restore the socio-economic conditions of the community by rebuilding the culture of cooperation (gotong royong) as social capital for the community.
2. West Papua is the second region (after Papua) with the lowest food independence in Indonesia. The existence of a social restriction policy to terminate the spread of the COVID-19 virus has resulted in changes to production, supply, distribution, and prices of strategic food commodities which has disrupted food availability in West Papua. There also has been an increase in prices for several basic commodities due to the increase of household demand for stocks. 
3. The preliminary impact of COVID-19 on local economic activities in Kei Islands are logistic disruption, fluctuation in prices of commodities, and a significant decrease in turnover of farmers and fishermen. Economic stimulus through government policy is the most significant strategy that has the potential to affect adverse risks to the local economy. 

SUMMARY

1. Large-scale social restrictions (PSBB) have reduced people’s mobility and productivity. Layoffs of workers have reduced purchasing power as a result of the decrease in income. Provinces in Indonesia are facing various challenges.
2. Prof. Mansur Afifi from Universitas Mataram discussed the Impact of COVID-19 on the economy of West Nusa Tenggara. Since the first quarter of 2020, several economic indicators in West Nusa Tenggara have shown slower growth, where in the second quarter of 2020 the contraction was quite significant. Fortunately, it has slightly improved during the last three quarters although the economic growth in general is still negative. The number of tourist visits have significantly decreased which negatively affected other sectors such as trade, transportation, warehousing businesses, accommodation, and food sectors. The poverty rate and unemployment have also increased slightly. However, recent data on the poverty rate for September 2020 has not been published so far therefore the number might still continue to increase.
3. There are several recommendations for economic recovery in West Nusa Tenggara. 
   • The local government needs to assist MSMEs as 90% of them have suffered from the pandemic. The government needs to build cooperation with financial institutions to encourage the growth of financing to MSMEs and SMEs.
   • For regional recovery, the government needs to extend social assistance until the pandemic ends, which includes not only consumer goods but also capital goods. 
   • Health service activities that were stopped during the pandemic (Posyandu, health promotion programs, environmental health) need to be carried back out so that health status of residents does not worsen. 
   • The involvement of various community groups in dealing with the impact of the pandemic has made significant contributions and the government should continue to build communication and restore the socio-economic conditions of the community until after the pandemic. Also, rebuilding the culture of cooperation (gotong royong) as social capital for the community is very important.
4. Josina Waromi and Ludia Wambrau (both from Universitas Negeri Papua) discussed the availability, distribution, and price trend of strategic food commodities during the COVID-19 pandemic in West Papua. West Papua is the second region (after Papua) with the lowest food independence in Indonesia. West Papua is very dependent on other regions for the availability of strategic food commodities. The majority of food commodities from outside West Papua are distributed to the region using sea transportation and then distributed to each region as needed. The existence of a social restriction policy to terminate the spread of the COVID-19 virus has resulted in changes to production, supply, distribution, and prices of strategic food commodities which has disrupted food availability in West Papua. There also has been an increase in prices for several basic commodities such as sugar, shallots, garlic, and eggs due to reduced food stocks caused by large-scale social restrictions (PSBB) from the commodity production areas and due to the increase of household demand for stocks. 
5. The Provincial Government of West Papua has made several responses to the issue.
   • The government has allocated more than IDR 197.8 billion for handling COVID-19 through health management activities, social safety net, and economic stimulus. 
   • The government has held meetings with 32 distributors to determine the readiness of distributors in ensuring the availability of special food stocks for rice, sugar, and cooking oil.
   • The Governor of West Papua urged the community to switch to local food and to utilize or optimize the land they own to plant local food commodities such as sweet potatoes, cassava, taro, and sago to reduce dependence on products from outside the region.
6. Wellem Teniwut from Tual State Fisheries Polytechnic in Southeast Maluku discussed COVID-19 risk to coastal local economic welfare of remote small islands region, with a focus on the Kei Islands. The local economy in Kei Islands is highly dependent on other regions to function properly, in particular the supply of essential goods. Local coastal communities rely on fishery and agriculture for their economic activities, which has a low multiplier effect on the local economy. Also, the economy relies on civil servants, army members, and policemen as regular buyers, which have limited purchasing power. Moreover, Tual is a remote island which makes supply chain and transportation a significant challenge.  The preliminary impact of COVID-19 on local economic activities in Kei Islands are logistic disruption within and outside Kei Islands, fluctuation in prices of commodities, and a significant decrease in turnover of farmers and fishermen for 3-4 months since the pandemic started. 
7. Economic stimulus through government policy is the most significant strategy that has the potential to affect adverse risks to the local economy. Based on the risk assessment of the COVID-19 situation on regional economic activities, the potential risk that may occur if the current state does not change is a shortage of essential goods in the area, followed by social conflict and starvation. The implication of the study is for the local government to ensure all direct economic stimulus is channeled to the right party and local markets must follow all health protocols to ensure customers are safe visiting local markets.