and the mortality rate. at the same time, the supply, capacity, and distribution of vaccines as well as the ability of hospitals, medical personnel, and treatment needs were very limited and incurred massive costs. consequently, bank indonesia was called upon to participate in joint measures to provide healthcare and save lives from the delta variant as a state duty for humanity, health, and public security. this call prompted bank indonesia to take the extraordinary initiative of funding the 2021 and 2022 state budget through the purchase of sbn in the primary market via private placement in accordance with the joint decree issued by the minister of finance and governor of bank indonesia on 23rd august 2021. the sbn purchased directly by bank indonesia to cover health costs in the state budget amounted to rp215 trillion in 2021 and rp224 trillion for 2022, and applied a very low interest rate 3 - month bi 7 - day reverse repo rate. bank indonesia ’ s participation also contributes to the interest costs incurred for financing the vaccination program and healthcare, capped at rp58 trillion ( in 2021 ) and rp40 trillion ( in 2022 ) based on the financial capacity of bank indonesia. with full funding from bank indonesia for all health costs in the 2021 and 2022 state budgets, the government responded to the delta variant with rapidity and is accelerating the vaccination roll out to achieve herd immunity towards greater resilience against the spread of potential new viruses and strains. this is critical to ensure that economic sectors and activities can restart with adequate risk mitigation concerning the covid - 19 pandemic. by accelerating the vaccination program to achieve herd immunity, the national economic policy response must focus on the immediate recovery of priority sectors capable of driving growth and creating jobs. synergy and policy innovation are essential to overcome the emergent issues, such as debottlenecking the real sector as well as providing fiscal policy incentives and macroprudential policy support in the financial sector. this approach has been initiated through kssk policy synergy targeting the property and automotive sectors prior to delta variant outbreak, encompassing three stages. first, map priority sectors as resilient, growth drivers or slow starters to support the economic recovery. in this regard, eight priority sub - sectors have been identified that can support economic growth and exports, namely : ( 1 ) food and beverages, ( 2 ) leather, leather goods and footwear, ( 3 ) textiles and apparel ; ( 4 ) chemicals, pharmaceuticals, and

essential. even raising the rate of growth in productivity requires well - targeted investments in new technology, to be sure, but also in intangible infrastructures that can generate increasing returns over the medium - to - long term. if there is a lack of investment due to the high cost of capital in some countries, doubts about demand, or uncertainty over the state and continuity of “ structural reforms, ” it is the responsibility of the political system and economic policy – and of those in leading positions in society, in the information industry and in training and education – to act with resolution, foresight and singleness of purpose to remove these impediments. in italy, in particular, given an economy and a society that have been practically stalled since well before the onset of the financial crisis, there is great potential for improvement, by removing constraints and rigidity, accelerating the adoption of new technology, closing the gap that separates many industries from the productivity frontier, and refurbishing infrastructures, including the most traditional ones. in the search for a new model of development, or at least a return to balanced, sustainable economic growth, we can start from acemoglu and robinson ’ s observation on how important it is to maintain a pluralist society and renew our political and economic institutions in a more inclusive direction. 32 specifically, it is not enough to set out reasonable objectives if the conditions for attaining them are lacking. in some cases, these conditions are unlikely to present themselves. the objective of bringing manufacturing value added back up from its current 15 - 16 per cent of gdp to 20 per cent by 2020, as it was a decade and more ago, proposed quite emphatically in the european commission ’ s strategy for the next few years 33, will run into evident historical and methodological obstacles. on the one hand it is most likely, owing notably to the spread of automation, that value added will be derived increasingly from sectors outside manufacturing. as in the case of agriculture, this does not necessarily reduce its importance for a nation ’ s economy or a society ’ s value system. but it does spotlight the risk of overstating its potential to create jobs. on the other hand, the spread of new technologies is making even the very definitions of economic sectors obsolete. e. brynjolfsson, a. mcafee and m. spence, “ new world order : labor, capital, and ideas in the power law economy ”, foreign affairs, july - august 2014. imf