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Government Measures to Mitigate Covid-19 Risk

Government Measures to Mitigate Covid-19 Risk Fiscal and Non Fiscal Stimuli Fiscal Stimuli Phase 1 Fiscal Stimuli Phase 2 1 Brought forward the launch of the Pre-Employment Card in Bali, North Sulawesi and the Riau Islands. 1 Relaxation of Income Tax (PPh Article 21). Increased disbursements of the Noncash Food Assistance 2 Program (BPNT) from IDR150,000 to IDR200,000 for a six- month period commencing March 2020. 2 Relaxation of Income Tax on Imports (PPh Article 22). 3 Provided a stimulus package for housing in the form of an IDR800 billion subsidy as well as a subsidy on down payments totalling IDR700 billion. 3 Relaxation of Income Tax (PPh Article 25). 4 4 Provided incentives for domestic and international travellers. Relaxation of Value Added Tax (VAT) Restitution. 5 Reduced the air passenger service fee (PSF) by 20% for March-May 2020. 6 Discounted the price of aviation fuel at airports located around nine travel destinations for March-May 2020. 7 Non-Fiscal Stimuli 1 Reduce and simplify restrictions on export activities to maintain export performance and competitiveness. Subsidised or provided grants totalling IDR3.3 trillion to local governments affected by lower tax revenues food service activities. Source: Bank Indonesia 2 Reduce and simplify restrictions on import activities to ensure the availability of raw materials. 7
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