The Effects of Human Mobility Restriction During Covid-19 Pandemic to Indonesia's Economy

Authors

DOI:

https://doi.org/10.31685/kek.v4i3.678

Keywords:

Mobility, Restriction, Relaxations, COVID, GRDP, Growth

Abstract

In response to the coronavirus disease 2019 (COVID-19) pandemic, several national governments have implemented lockdown restrictions to reduce the risk of infection. However, this will have an impact on the economy of a country, including Indonesia. This study will analyze the effect of mobility restrictions on the economic growth in Indonesia during the pandemic in 2020. The data used are real-time data on community mobility report provided by Google. Data processing begins with factor analysis, followed by multiple linear regression. This study aims to model the changes in community mobility as exogenous factors affecting economic growth. As a result, restrictions on community mobility, particularly related to job factors, significantly affect the economic development of an area, particularly in the provinces of Java Island. The resulting model would explain 96.97 per cent of the variations in regional economic growth in Indonesia in 2020. Besides, this study predicts that 25 provinces will experience a recession in the third quarter of 2020. This forecast is the result of economic growth estimated using the current condition. Learning the association between mobility and economy is essential to understand how much restrictions or relaxations needed that can be appropriate to our economy during the pandemic.

Author Biography

  • Ferdian Fadly, Badan Pusat Statistik Provinsi Riau
    Statistician at BPS - Statistics of Riau Province

References

Abu-Rayash, A., & Dincer, I. (2020). Analysis of mobility trends during the COVID-19 coronavirus pandemic: Exploring the impacts on global aviation and travel in selected cities. In Energy Research and Social Science. https://doi.org/10.1016/j.erss.2020.101693

Aldila, D., Khoshnaw, S. H. A., Safitri, E., Anwar, Y. R., Bakry, A. R. Q., Samiadji, B. M., Anugerah, D. A., GH, M. F. A., Ayulani, I. D., & Salim, S. N. (2020). A mathematical study on the spread of COVID-19 considering social distancing and rapid assessment: The case of Jakarta, Indonesia. Chaos, Solitons and Fractals. https://doi.org/10.1016/j.chaos.2020.110042

Atalan, A. (2020). Is the lockdown important to prevent the COVID-9 pandemic? Effects on psychology, environment and economy-perspective. Annals of Medicine and Surgery. https://doi.org/10.1016/j.amsu.2020.06.010

Backer, J. A., Klinkenberg, D., & Wallinga, J. (2020). Incubation period of 2019 novel coronavirus (2019- nCoV) infections among travellers from Wuhan, China, 20 28 January 2020. In Eurosurveillance. https://doi.org/10.2807/1560-7917.ES.2020.25.5.2000062

Beck, M. J., & Hensher, D. A. (2020). Insights into the impact of COVID-19 on household travel and activities in Australia – The early days under restrictions. Transport Policy. https://doi.org/10.1016/j.tranpol.2020.07.001

Bonaccorsi, G., Pierri, F., Cinelli, M., Flori, A., Galeazzi, A., Porcelli, F., Schmidt, A. L., Valensise, C. M., Scala, A., Quattrociocchi, W., & Pammolli, F. (2020). Economic and social consequences of human mobility restrictions under COVID-19. Proceedings of the National Academy of Sciences of the United States of America. https://doi.org/10.1073/pnas.2007658117

Box, G. E. P., Jenkins, G. M., & Reinsel, G. C. (2013). Time series analysis: Forecasting and control: Fourth edition. In Time Series Analysis: Forecasting and Control: Fourth Edition. https://doi.org/10.1002/9781118619193

BPS. (2020). Sistem Rujukan Statistik. Badan Pusat Statistik. https://www.sirusa.bps.go.id/

Caraka, R. E., Lee, Y., Kurniawan, R., Herliansyah, R., Kaban, P. A., Nasution, B. I., Gio, P. U., Chen, R. C., Toharudin, T., & Pardamean, B. (2020). Global Journal of Environmental Science and Management Impact of COVID-19 large scale restriction on environment and economy in Indonesia. Global J. Environ. Sci. Manage. https://doi.org/10.22034/GJESM.2019.06.SI.07

FANG, H., WANG, L., & YANG, Y. (2020). Human Mobility Restrictions and the Spread of the Novel Coronavirus (2019-nCoV) in China. SSRN Electronic Journal. https://doi.org/10.1101/2020.03.24.20042424

Feroze, N. (2020). Forecasting the patterns of COVID-19 and Causal Impacts of Lockdown in Top Ten Affected Countries using Bayesian Structural Time Series Models. Chaos, Solitons & Fractals. https://doi.org/https://doi.org/10.1016/j.chaos.2020.110196

Ghysels, E., Osborn, D. R., & Rodrigues, P. M. M. (2006). Chapter 13 Forecasting Seasonal Time Series. In Handbook of Economic Forecasting. https://doi.org/10.1016/S1574-0706(05)01013-X

Google. (2020). Community Mobility Report. Google. https://www.google.com/covid19/mobility/

Hair, J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. (2018). Multivariate Data Analysis, Multivariate Data Analysis. In Multivariate Data Analysis, Multivariate Data Analysis B2 - Multivariate Data Analysis, Multivariate Data Analysis.

Liu, J., Wang, L., Zhang, Q., & Yau, S. T. (2020). The dynamical model for COVID-19 with asymptotic analysis and numerical implementations. Applied Mathematical Modelling. https://doi.org/10.1016/j.apm.2020.07.057

Lu, H., Stratton, C. W., & Tang, Y. W. (2020). Outbreak of pneumonia of unknown etiology in Wuhan, China: The mystery and the miracle. In Journal of Medical Virology. https://doi.org/10.1002/jmv.25678

Muhammad Rosyidi, R., Priyanto, B., Putu Wisnu Wardhana, D., Tsaniadi Prihastomo, K., & Kamil, M. (2020). COVID-19 and its impact on neurosurgery: our early experience in Lombok Island Indonesia. Interdisciplinary Neurosurgery. https://doi.org/10.1016/j.inat.2020.100868

Nicola, M., Alsafi, Z., Sohrabi, C., Kerwan, A., Al-Jabir, A., Iosifidis, C., Agha, M., & Agha, R. (2020). The socio-economic implications of the coronavirus pandemic (COVID-19): A review. In International Journal of Surgery. https://doi.org/10.1016/j.ijsu.2020.04.018

Nicola, M., Sohrabi, C., Mathew, G., Kerwan, A., Al-Jabir, A., Griffin, M., Agha, M., & Agha, R. (2020). Health Policy and Leadership Models During the COVID-19 Pandemic- Review Article. International Journal of Surgery. https://doi.org/10.1016/j.ijsu.2020.07.026

O’Connor, C. M., Anoushiravani, A. A., DiCaprio, M. R., Healy, W. L., & Iorio, R. (2020). Economic Recovery After the COVID-19 Pandemic: Resuming Elective Orthopedic Surgery and Total Joint Arthroplasty. Journal of Arthroplasty. https://doi.org/10.1016/j.arth.2020.04.038

Prawoto, N., Purnomo, E. P., & Zahra, A. A. (2020). The impacts of Covid-19 pandemic on socio-economic mobility in Indonesia. International Journal of Economics and Business Administration. https://doi.org/10.35808/ijeba/486

Rahman, M. A., Zaman, N., Asyhari, A. T., Al-Turjman, F., Alam Bhuiyan, M. Z., & Zolkipli, M. F. (2020). Data-driven dynamic clustering framework for mitigating the adverse economic impact of Covid-19 lockdown practices. Sustainable Cities and Society. https://doi.org/10.1016/j.scs.2020.102372

Sahu, D., Agrawal, T., Rathod, V., & Bagaria, V. (2020). Impact of COVID 19 lockdown on orthopaedic surgeons in India: A survey. Journal of Clinical Orthopaedics and Trauma. https://doi.org/10.1016/j.jcot.2020.05.007

Savić, D. (2020). COVID-19 and work from home: Digital transformation of the workforce. Grey Journal.

Setiati, S., & Azwar, M. K. (2020). COVID-19 and Indonesia. Acta Medica Indonesiana.

Shen, C. Y. (2020). A logistic growth model for COVID-19 proliferation: experiences from China and international implications in infectious diseases. International Journal of Infectious Diseases : IJID : Official Publication of the International Society for Infectious Diseases. https://doi.org/10.1016/j.ijid.2020.04.085

Sigala, M. (2020). Tourism and COVID-19: Impacts and implications for advancing and resetting industry and research. Journal of Business Research. https://doi.org/10.1016/j.jbusres.2020.06.015

Tan, J., Xiong, Y., Zhao, S., Liu, C., Huang, S., Lu, X., Thabane, L., Xie, F., Sun, X., & Li, W. (2020). Quantifying the impacts of human mobility restriction on the spread of COVID-19: an empirical analysis from 344 cities of China. MedRxiv. https://doi.org/10.1101/2020.07.13.20148668

Tisdell, C. A. (2020). Economic, social and political issues raised by the COVID-19 pandemic. Economic Analysis and Policy. https://doi.org/10.1016/j.eap.2020.08.002

Trading Economics. (2020). Indonesia GDP Annual Growth Rate. TradingEconomics.Com. https://tradingeconomics.com/indonesia/gdp-growth-annual

WHO. (2020). WHO Coronavirus Disease (COVID-19) Dashboard. World Health Organization. https://covid19.who.int/

Zhou, Y., Xu, R., Hu, D., Yue, Y., Li, Q., & Xia, J. (2020). Effects of human mobility restrictions on the spread of COVID-19 in Shenzhen, China: a modelling study using mobile phone data. The Lancet Digital Health. https://doi.org/10.1016/S2589-7500(20)30165-5

Published

2021-08-09

Issue

Section

Articles