Indonesian Economic Business Cycle for the 2019-2022 Period Reviewed from an Islamic Economics Perspective
Dwi March Trisnawaty (a*), Sri Herianingrum (b), Nurah Badrus Soleh (c)

a) Faculty of Economy and Business, Airlangga University, Jl. Airlangga No.4 Surabaya, Indonesia.
dwi.march.trisnawaty-2022[at]feb.unair.ac.id
b) Faculty of Economy and Business, Airlangga University, Jl. Airlangga No.4 Surabaya, Indonesia.
sri.heriangningrum[at]feb.unair.ac.id
c) Faculty of Economy and Business, Airlangga University, Jl. Airlangga No.4 Surabaya, Indonesia.
nurah.badrus.soleh-2022[at]fe.unair.ac.id

Abstract

Indonesia is experiencing ups and downs in the business cycle, and the impact of the COVID-19 pandemic has been a big shock to economic development. As a result of the pandemic surge, there was pressure on the Indonesian monetary economy on aggregate demand and aggregate supply. So that economic output experiences a decline and is not at the optimal output level. This paper will show the business cycle or economic fluctuations during the Covid-19 pandemic. The discussion in this paper discusses the results of the Indonesian business cycle in the first quarter of 2020, starting with an economic contraction and a recession in the following quarter. After that, economic recovery occurred and reached long-term optimal output again after 1.5 years. This paper shows Indonesian business cycle data for the 2019-2022 period reviewed from the perspective of the business cycle in Islamic Macroeconomics based on profit sharing. Looking at the economic business cycle, the government can implement appropriate fiscal and monetary policies at each phase.

Keywords: Business Cycle, Monetary Economics, Covid-19

Topic: Monetary economics