IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i12p9279-d1166629.html
   My bibliography  Save this article

Reviving a City’s Economic Engine: The COVID-19 Pandemic Impact and the Private Sector’s Engagement in Bandung City

Author

Listed:
  • Ahmad Zaini Miftah

    (Public Administration Department, Faculty of Social and Political Sciences, Universitas Padjadjaran, Bandung 45363, Indonesia)

  • Ida Widianingsih

    (Public Administration Department, Faculty of Social and Political Sciences, Universitas Padjadjaran, Bandung 45363, Indonesia)

  • Entang Adhy Muhtar

    (Public Administration Department, Faculty of Social and Political Sciences, Universitas Padjadjaran, Bandung 45363, Indonesia)

  • Ridwan Sutriadi

    (Regional and Urban Planning Department, School of Architecture, Planning and Policy Development, Institut Teknologi Bandung, Bandung 40116, Indonesia)

Abstract

The COVID-19 pandemic has not only affected public health but has also significantly impacted the economy. Bandung, a bustling city in Indonesia serving as a satellite to the capital, has been hit hard due to its high population density, mobility, and reliance on the tourism, trade, and transportation sectors. Using a Computable General Equilibrium (CGE) model developed at the interregional level of Indonesia, this study investigates the microeconomic indicators of several economic activities in Bandung, namely, the transportation, accommodation and food–beverage, water supply, and trade (MSMEs) sectors, to assess the impact of the pandemic. Additionally, the study examines the role of private sector actors in contributing to the sustainable recovery efforts toward achieving the Sustainable Development Goals (SDGs) amidst the pandemic. The findings reveal that Bandung’s transportation, accommodation, food and beverage, water supply, and trade sectors experienced a significant decline in economic activity. However, there was a gradual recovery, with increased economic activity between 2019 and 2021. Private sector actors and the health sector were the main drivers of economic recovery, with other sectors also contributing to the effort.

Suggested Citation

  • Ahmad Zaini Miftah & Ida Widianingsih & Entang Adhy Muhtar & Ridwan Sutriadi, 2023. "Reviving a City’s Economic Engine: The COVID-19 Pandemic Impact and the Private Sector’s Engagement in Bandung City," Sustainability, MDPI, vol. 15(12), pages 1-15, June.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:12:p:9279-:d:1166629
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/12/9279/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/12/9279/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alessandro Basurto & Herbert Dawid & Philipp Harting & Jasper Hepp & Dirk Kohlweyer, 2023. "How to design virus containment policies? A joint analysis of economic and epidemic dynamics under the COVID-19 pandemic," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 18(2), pages 311-370, April.
    2. Pravakar Sahoo & Ashwani, 2020. "COVID-19 and Indian Economy: Impact on Growth, Manufacturing, Trade and MSME Sector," Global Business Review, International Management Institute, vol. 21(5), pages 1159-1183, October.
    3. Ahmad Taha Khalaf & Yuanyuan Wei & Jun Wan & Samiah Yasmin Abdul Kadir & Jamaludin Zainol & Hua Jiang & Ahmed N. Abdalla, 2023. "How Did the Pandemic Affect Our Perception of Sustainability? Enlightening the Major Positive Impact on Health and the Environment," Sustainability, MDPI, vol. 15(2), pages 1-18, January.
    4. Manuel Alejandro Cardenete & Ana-Isabel Guerra & Ferran Sancho, 2017. "Applied General Equilibrium," Springer Texts in Business and Economics, Springer, edition 2, number 978-3-662-54893-6, December.
    5. Zhang, Qiang & Tong, Qiong, 2021. "The economic impacts of traffic consumption during the COVID-19 pandemic in China: A CGE analysis," Transport Policy, Elsevier, vol. 114(C), pages 330-337.
    6. Greta Falavigna & Roberto Ippoliti, 2022. "Relief Policy and the Sustainability of COVID-19 Pandemic: Empirical Evidence from the Italian Manufacturing Industry," Sustainability, MDPI, vol. 14(22), pages 1-12, November.
    7. Fangfang Liu & Zheng Ma & Ziqing Wang & Shaobo Xie, 2022. "Trade-Off between COVID-19 Pandemic Prevention and Control and Economic Stimulus," IJERPH, MDPI, vol. 19(21), pages 1-22, October.
    8. Martino Maggetti & Philipp Trein, 2022. "Policy integration, problem-solving, and the coronavirus disease crisis: lessons for policy design [Neglected challenges to evidence-based policy-making: The problem of policy accumulation]," Policy and Society, Darryl S. Jarvis and M. Ramesh, vol. 41(1), pages 53-67.
    9. Hafiz Suliman Munawar & Sara Imran Khan & Zakria Qadir & Abbas Z. Kouzani & M A Parvez Mahmud, 2021. "Insight into the Impact of COVID-19 on Australian Transportation Sector: An Economic and Community-Based Perspective," Sustainability, MDPI, vol. 13(3), pages 1-24, January.
    10. Ilenia Spadaro & Francesca Pirlone & Fabrizio Bruno & Gianluca Saba & Barbara Poggio & Sabrina Bruzzone, 2023. "Stakeholder Participation in Planning of a Sustainable and Competitive Tourism Destination: The Genoa Integrated Action Plan," Sustainability, MDPI, vol. 15(6), pages 1-30, March.
    11. Luis Alberiko Gil-Alana & Carlos Poza, 2022. "The impact of COVID-19 on the Spanish tourism sector," Tourism Economics, , vol. 28(3), pages 646-653, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. M. Alejandro Cardenete & M. Carmen Lima & Ferran Sancho, 2013. "Are There Key Sectors? An Appraisal Using Applied General Equilibrium," The Review of Regional Studies, Southern Regional Science Association, vol. 43(2,3), pages 111-129, Winter.
    2. Rafael Martínez-Peláez & Alberto Ochoa-Brust & Solange Rivera & Vanessa G. Félix & Rodolfo Ostos & Héctor Brito & Ramón A. Félix & Luis J. Mena, 2023. "Role of Digital Transformation for Achieving Sustainability: Mediated Role of Stakeholders, Key Capabilities, and Technology," Sustainability, MDPI, vol. 15(14), pages 1-27, July.
    3. Tchoffo, Rodrigue, 2022. "Convergence statique et dynamique dans un modèle d’équilibre général calculable dynamique récursif : proposition d’une approche simplifiée et application dans GAMS [Static and dynamic convergence i," MPRA Paper 114408, University Library of Munich, Germany, revised 01 Sep 2022.
    4. Chaterina Agusta Paulus & Akhmad Fauzi & Damianus Adar, 2023. "Analyzing Community Perception of Protected Areas to Effectively Mitigate Environmental Risks Using Qualitative Comparative Analysis: The Case of Savu Sea National Marine Park, East Nusa Tenggara, Ind," Sustainability, MDPI, vol. 15(23), pages 1-18, December.
    5. Barkha Jadwani & Shilpa Parkhi & Pradip Kumar Mitra, 2024. "Operational Risk Management in Banks: A Bibliometric Analysis and Opportunities for Future Research," JRFM, MDPI, vol. 17(3), pages 1-20, February.
    6. Huidan Xue & Yujia Zhai & Wen-Hao Su & Ziling He, 2023. "Governance and Actions for Resilient Urban Food Systems in the Era of COVID-19: Lessons and Challenges in China," Agriculture, MDPI, vol. 13(9), pages 1-25, August.
    7. Li, Siping & Zhou, Yaoming & Kundu, Tanmoy & Sheu, Jiuh-Biing, 2021. "Spatiotemporal variation of the worldwide air transportation network induced by COVID-19 pandemic in 2020," Transport Policy, Elsevier, vol. 111(C), pages 168-184.
    8. Magdalena Majchrzak & Aneta Ejsmont, 2023. "Competitiveness of Small and Medium-Sized Enterprisesin the German-Polish Border Area in Timesof Extraordinary Threats," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 247-267.
    9. Vikram Dayal & Anand Murugesan, 2020. "Demystifying causal inference: ingredients of a recipe," IEG Working Papers 393, Institute of Economic Growth.
    10. Joon-Seok Kim & Nina Shin, 2021. "Planning for Railway Station Network Sustainability Based on Node–Place Analysis of Local Stations," Sustainability, MDPI, vol. 13(9), pages 1-12, April.
    11. Tchoffo, Rodrigue & Nkemgha, Guivis & Paul, Tadzong, 2019. "Anglophone Crisis in Cameroon: Can indirect tax play a crucial role?," MPRA Paper 96457, University Library of Munich, Germany, revised 10 Oct 2019.
    12. Hossain, Mohammad Rokibul & Akhter, Fahmida & Sultana, Mir Misnad, 2022. "SMEs in Covid-19 Crisis and Combating Strategies: A Systematic Literature Review (SLR) and A Case from Emerging Economy," Operations Research Perspectives, Elsevier, vol. 9(C).
    13. Böhringer, Christoph & Bortolamedi, Markus, 2015. "Sense and no(n)-sense of energy security indicators," Ecological Economics, Elsevier, vol. 119(C), pages 359-371.
    14. Olkhov, Victor, 2018. "Economic Transactions Govern Business Cycles," MPRA Paper 87207, University Library of Munich, Germany.
    15. Hafiz Suliman Munawar & Sara Imran Khan & Zakria Qadir & Yusra Sajid Kiani & Abbas Z. Kouzani & M. A. Parvez Mahmud, 2021. "Insights into the Mobility Pattern of Australians during COVID-19," Sustainability, MDPI, vol. 13(17), pages 1-19, August.
    16. Tobias Mueller & Steven Gronau, 2023. "Fostering Macroeconomic Research on Hydrogen-Powered Aviation: A Systematic Literature Review on General Equilibrium Models," Energies, MDPI, vol. 16(3), pages 1-33, February.
    17. Victor Olkhov, 2018. "How Macro Transactions Describe the Evolution and Fluctuation of Financial Variables," IJFS, MDPI, vol. 6(2), pages 1-19, March.
    18. Mohamed Yousif & Chaminda Hewage & Liqaa Nawaf, 2021. "IoT Technologies during and Beyond COVID-19: A Comprehensive Review," Future Internet, MDPI, vol. 13(5), pages 1-24, April.
    19. Xinping Zhang & Yimeng Zhang & Yunchan Zhu, 2021. "COVID-19 Pandemic, Sustainability of Macroeconomy, and Choice of Monetary Policy Targets: A NK-DSGE Analysis Based on China," Sustainability, MDPI, vol. 13(6), pages 1-20, March.
    20. Daniyal Alghazzawi & Atika Qazi & Javaria Qazi & Khulla Naseer & Muhammad Zeeshan & Mohamed Elhag Mohamed Abo & Najmul Hasan & Shiza Qazi & Kiran Naz & Samrat Kumar Dey & Shuiqing Yang, 2021. "Prediction of the Infectious Outbreak COVID-19 and Prevalence of Anxiety: Global Evidence," Sustainability, MDPI, vol. 13(20), pages 1-16, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:12:p:9279-:d:1166629. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.