Government Measures to Mitigate Covid-19 Risk
Government Measures to Mitigate Covid-19 Risk
Government Regulation In UU 2/2020, Previously Perppu No.1 2020
Regulates two topics:
(1) State Financial Policy (2) Stability of Financial System
State Financial Policy
Stability of Financial System
1. Relaxation Deficit exceeds 3%, but starting in 2023 it returns to the
maximum level of 3%.
2. Relaxation is related to the allocation/reallocation of expenditure
between institutions, between functions, and between programs and
mandatory spending.
3. Relaxation of allocation / reallocation of Regional Government
Expenditures.
4. Providing loans to the Indonesia Deposit Insurance Corporation
("IDIC")
5. Issuance of Government bond can be purchased by Bank Indonesia,
SOES, corporate investors and/or retail investors
6. Use of alternative budget sources for example ASL, education
endowment funds, and funds managed by the Public Service Agency.
7. Taxation Policy:
a) Decrease in Corporate Income Tax Rates gradually to 20%
starting in 2022;
b) Taxation Incentives in the Capital Market for public ownership
<40%;
c) Taxation of Electronic Transactions;
d) Extension of tax administration time;
e) Customs facilities in the context of COVID-19.
1.
Improved Coordination among The
Financial System Stability Committee
("FSSC") members
2.
Provide the necessary authority to 4
institutions to prevent a crisis (forward
looking) in the KSSK forum for example
to issue instruments, BI buys
government bond on the primary
market, lending to "IDIC" and "FSA"
may request a merger or consolidation
of Financial Services Institutions.
Foreign exchange management (LLD)
management for residents
3.
4.
Increase public confidence without
causing moral hazard.
Source: Coordinating Ministry for Economic Affairs
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