The Effect of Coronavirus (COVID-19) on Purchasing Power, Unemployment, and Income in Indonesia: Reviewed from the Perception of Indonesian

Abstract

The Covid-19 pandemic has tremendously impacted economic activity in many countries, including Indonesia. The impact greatly felt by the community is declined purchasing power, unemployment, and increased poverty. Therefore, this study aimed to describe the impact of the pandemic on the decline in people's purchasing power, unemployment, and increased poverty due to reduced economic activity in Indonesia. A survey method was used with a quantitative approach involving 850 selected respondents. Data were collected using a questionnaire distributed through google form media. The data analysis showed that Coronavirus positively and significantly affects purchasing power and unemployment but negatively and significantly affects income or poverty. Furthermore, Coronavirus and unemployment have a partial negative and significant effect on income, but purchasing power has a positive and significant effect. Therefore, purchasing power and unemployment mediate the positive and significant effect of Coronavirus on income.