Inflation Control and Financial Facilities Strategy
Government Measures to Mitigate Covid-19 Risk
Government Regulation In UU 2/2020, Previously Perppu No.1 2020
Regulates two topics: (1) National Budget (APBN) and (2) Financial Sector Policy
National Budget (APBN)
Financial Sector Policy
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. Lending to LPS.
5. Issuance of SUN and SBSN can be purchased by BI,
BUMN, corporate investors and / or retail investors.
6. Use of alternative budget sources for example SAL,
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.
2.
3.
4.
Improved Coordination among KSSK members
Provide the necessary authority to 4 institutions to
prevent a crisis (forward looking) in the KSSK forum
for example to issue instruments, BI buys SUN on the
primary market, lending to LPS and OJK may request
a merger or consolidation of Financial Services
Institutions.
Foreign exchange management (LLD) management for
residents
Increase public confidence without causing moral
hazard.
Source: Coordinating Ministry for Economic Affairs
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