THE IMPACT OF THE RELAXATION POLICY DURING THE COVID-19 PANDEMIC ON THE NATIONAL ECONOMY

The more widespread the impact of the Covid-19 pandemic on the community, will eventually spread to the economic conditions of the community, both in terms of income, consumption, production, investment as well as exports and imports. The government overcomes this worst possibility, with a relaxation policy. The purpose of this research are; to analyze the effect of consumption, investment, government spending and net exports on gross regional domestic income in Indonesia prior to the government's relaxation policy. This research, conducted by taking data on consumption, investment, government spending and net exports of Indonesia from January 2010 to March 2020. Data were analyzed by using the Vector Error Correction Model (VECM). Before being analyzed, the data will pass through the assumption test stages, then the VECM test is carried out, and the data significance test. The results show that in the long run all data have a significant effect on national income, but not while in the short run. There are some that do not have a significant effect, for example Export (-2), Import (-2), Consumption (-2), FDI (-1) , PMA (-2), PMDN (-1), PMDN (-2), while other variables have a significant effect. This condition is due to the production process which takes more than one year to increase the PDB. Apart from that, the prevailing regulations, regulations and bureaucracy do not stimulate an increase in production which ultimately slows economic growth.