ADMINISTRATING REGION IN THE MIDDLE OF PANDEMIC

Since it was declared a non-natural national disaster, the COVID 19 pandemic made all aspects of life especially the economy decline sharply. Various policies, both national and regional scale, were carried out to slow its spread, such as PSBB (Large-Scale Social Limitation), Social Distancing, Health Quarantine Policy, and Physical Distancing. On the other hand, there are big challenges that must be faced by the State administrators, namely the economic downturn which gives systemic implication to the order of people's lives and local government policies, increased poverty and unemployment, and the liquidation of various businesses which, of course, has an impact on the decline of regional and state tax revenues.

This is in line with research conducted by Silalahi and Ginting (2020) which states that the government's fiscal policy to achieve the target of state revenue is by revising the tax revenue target, rearranging the allocation of state revenue in the 2020 APBN and applying digital tax for activities through electronic media. Meanwhile, in terms of expenditure, the government will refocus and revise the budget to reduce the budget deficit figure and to help government financing that has done 3 times the budget stimulus to optimize its use during the Covid-19 pandemic. Changes in fiscal and non-fiscal policies were made by the government to support the industrial sector and facilitate export-import and at the end of March Rp 405.1 trillion was allocated for health policy.

The paradox experienced by the government between saving the economy and public health, so it is necessary to change fiscal policy. These changes are a change in the tax payment system through electronic media, which can reduce the risk of co-19 distribution. This system can be implemented by local governments in collaboration with transportation, information, and communication services to facilitate the public in making tax payment obligations. Rearrangement of revenue by replacing superior sectors that cannot be developed amid a pandemic with other potential sectors.

Covid-19 hit all economic sectors, especially the tourism sector in the province of Bali hard. The impact of the decline in this sector not only resulted in a decrease in GRDP but the biggest contributor to unemployment in the province of Bali. To save local revenue, local governments need to think of other alternative sources of income so that potential analysis research is important. Yuendini et al. (2019) found that in addition to the tourism sector, the Province of Bali appeared to have another sector that could increase local government revenue. The results of his research found that the agriculture sector, the plantation sector, the forestry sector, and the accommodation, food, and beverage sector hold the top potential of all sectors that have the potential to be developed into the leading sectors of the province of Bali so that it is expected to increase the GRDP of the provincial government of Bali. Another researcher, Hürtgen (2020) mentions that co-19 pandemic caused a severe economic crisis throughout the world. In the euro area, the debt-to-GDP ratio has increased and a very significant reduction in surpluses has caused concern for all parties.

Meanwhile, Maher et al. (2020) offer a RISE (Resilient, Intension, Sustainability, and Endurance) framework for navigating the fiscal effects of COVID-19 and relying on recent surveys to assess the strategic response of local governments and nonprofit organizations. Resilient is the financial capacity and resilience to maintain current organizational operations. The intension is an action that must be taken as soon as possible to minimize the financial impact. Sustain is a short-term action in the next budget cycle towards stabilization. Endurance is a way for an organization to defend itself during or after a pandemic, such as, adapting to new normal, doing a renewal and reforming and rethinking what can be done on renewal (rethink) and the organization must have strategic planning in restructuring short, medium and long term activities.

Local governments, must reform and rethink if they want to save the financial condition of their regions. Revenue cannot be the same as before, so we have to think about additional revenue alternatives and other sectors that can develop and still have potential. Spending arrangements with priority scale must be done by local governments to be able to save the economy while addressing public health problems due to the co-19 pandemic. This research provides solutions for local governments and non-profit organizations that are affected by organizations. The way to save the organization is to reduce expenses, cut expenses and salaries

Bibliography

Hürtgen, P. (2020). Fiscal Sustainability during the COVID-19 Pandemic. Available at SSRN 3627373.

Maher, C. S., Hoang, T., & Hindery, A. (2020). Fiscal Responses to COVID‐19: Evidence from Local Governments and Nonprofits. Public Administration Review.

Silalahi, D. E., & Ginting, R. R. (2020). Strategi Kebijakan Fiskal Pemerintah Indonesia Untuk Mengatur Penerimaan dan Pengeluaran Negara Dalam Menghadapi Pandemi Covid-19. Jesya (Jurnal Ekonomi & Ekonomi Syariah), 3(2), 156-167.

Yuendini, E. P., Rachmi, I. N., Aini, N. N., Harini, R., & Alfana, M. A. F. (2019). Analisis Potensi Ekonomi Sektor Pertanian dan Sektor Pariwisata di Provinsi Bali Menggunakan Teknik Analisis Regional. Jurnal Geografi: Media Informasi Pengembangan dan Profesi Kegeografian, 16(2), 128-136.