Massive Movement of Local Balinese Institutions in the Middle of COVID-19

Massive Movement of Local Balinese Institutions in the Middle of COVID-19

Ni Putu Wiwin Setyari

Program Studi Ekonomi Pembangunan, Fakultas Ekonomi dan Bisnis, Universitas Udayana

Email address: wiwin.setyari@unud.ac.id 

The COVID-19 pandemic is inevitable for any region of the world, especially those that open up their economies widely. Unlimited movement for people, goods and capital is the key to a new civilization. Tourism is a new engine of growth, after the industry, especially for countries that are unique to both nature and culture. Indonesia is no exception. The share of tourism in the Indonesian economy is indeed relatively small, only by 4.8% in 2019. Baldwin and Mauro (2020) say if this virus has an infectious effect in the economic field as severe as medical transmission. Economists call this pandemic different. The previous pandemic virus spread did indeed attack several countries at the time, but the economic effect was not too dominant. In addition, the number of other viral pandemics is smaller, compared to the number of COVID-19 cases which has reached nine times the number of SARS cases. Large countries such as the US, China, Japan, Germany, Britain, France and Italy are all in the top ten most affected by this disease. While China is by far the hardest hit. The last few days we have witnessed an exponential growth of cases in the G7 countries. Indonesia is a country with fast exponential growth.

The spread of the Covid-19 virus can cause supply-demand doom loops, and open the trap of stagnation due to pessimism and animal spirit (Fornaro and Wolf, 2020). The sectors most affected by the Covid-19 pandemic in Bali are the tourism sector and its supporters. According to a report by the Moody's Analytics Research Institute (2020), the Asian region will be the most disadvantaged from the economic downturn in China and the World. The short-term impact has also been seen in the tourism sector. A number of countries that have temporarily suspended flights and shipping to and from China have recorded a decline in tourist arrivals, such as Thailand, Japan and Vietnam, including Indonesia. Based on the Hotel & Restaurant Industry Development Report Related to the COVID-19 Outbreak, the impact of this pandemic is far worse on the business performance of the hotel & restaurant market compared to similar outbreaks (SARS 2003, H5N1 2016).

Based on the Bali Governor's Letter, dated March 30, 2020, and the Bali Governor's call to limit the movement of tourists visiting tourist attractions, the operations of tourist attractions in Bali were temporarily closed from March 31, 2020 to April 21, 2020. Hotels have started laying off employees, with the term temporary leave, especially those who are contract employees and daily workers (DW). In the 2018 Indonesia Hotel and Accommodation Statistics records, there are 33,192 people who work in Bali's hospitality sector and are at risk of losing their jobs. Weakening tourism is also predicted to have an impact on the retail industry. Although it did not have much impact on stock availability, the effect was felt to be very significant in terms of transactions (Aprindo, 2020). Bali's trade sector is also predicted to experience a number of contractions considering Bali's main trading partners are countries that are heavily affected by COVID-19. Most products originating from China also become strategic consumption goods. The large decrease in imports of consumption products from China and other affected countries will have serious implications for inflation in Bali.

In difficult conditions, it is undeniable that many people have experienced a decline in purchasing power to meet their daily needs. Central and regional governments have indeed carried out economic stimulation in the form of direct cash assistance, pre-employment cards, credit restructuring and others. But all forms stimulation process need time until it be able to really reach the hands of people in need.

Bali, which is well known for its strong local culture and often become an example that to move does not always have to rely on government. Without having orders from the government, almost all custom villages in Bali intervened in overcoming the impact of COVID-19 in their respective regions. They move together in various aspects. Many things can then be identified from the massive movement of custom villages in Bali. First, in terms of securing the area and limiting the spread of the virus, custom villages are deploying "pecalang" to monitor the movements of their respective populations. Consciously and voluntarily they carry out routine monitoring in their area, raising public awareness for the use of masks, limiting shop operating hours, spraying disinfectants, limiting visits from outside area are some of the things we can see. From the beginning of the COVID-19 issue to date, these activities are still well monitored because they do not work based on projects that have definite time constraints.

Second, the provision of food assistance. Easing the use of village funds, which is permitted and then diverted in the form of direct cash assistance of 30% of the funds obtained by each village, allows administrative villages to then provide assistance to communities deemed in need. However, before the decision was made, we could see if the custom villages moved first with their respective village credit institutions (Lembaga Perkreditan Desa/LPD) to provide food aid to the community. However then, the limitation of this assistance is only given to members of the community who are indeed indigenous villagers, so that relatively not pay attention beyond that. But the speed of this assistance must be given a thumbs up because they move massively and almost simultaneously throughout Bali.

Third, traditional villages are seen also carrying out innovative and creative activities by moving the economy of their local communities under the coordination of customary leaders. For example, the use of village funds to build infrastructure by utilizing local communities as the workers with a mutually agreed wage. In some places, workers can choose to be paid with money or food. There are also develop agriculture and all types of household-scale businesses that are made in groups to encourage the purchasing power of their communities. Creativity and innovation are needed in these conditions. High trust in the customary system makes this method more effective in securing the economy of local community.

It is undeniable that the traditional and cultural system in Bali has become a strong structured system in the community. Because Balinese are basically more "submissive" to customary law than normative law, making policies implemented through local institutions more effective than others. When referring to the meaning of institution, what is meant here is not only the organization, but also the norms, customs, beliefs, and trust to each community member, has to contribute to its effectiveness. Therefore, Balinese local culture should not fade because this culture is the stronghold of society, not only in relation to non-material, but also material. Bali's tourism and economy are built by its culture, not vice versa, so preserving local culture also means maintaining the survival of its people.