The COVID-19 pandemic has pushed the economy into a recession. The GDP shrank 2.07 percent in 2020, the first economic contraction since the 1998-1999 Asian financial crisis. The pandemic forced the government to implement large-scale social restrictions to stop the virus spread. This halted public mobility, which led to deteriorated demand and thus severely damaged the supply side of the economy. As spending was dragged down, headline inflation eased to 1.68 percent. Without demand, numerous businesses, including large industries and small and medium enterprises (SMEs) were either temporarily or permanently shut down, leading to many people losing jobs. Unemployment, hence, surged to 7.07 percent, the highest since 2011. To counter the turmoil and minimize the pandemic’s impact, the government together with Bank Indonesia (BI) loosened fiscal and monetary policies by allowin…