Inflation Control and Financial Facilities Strategy

The Government of Indonesia's Relief Program Budget To deal with health, social protection, and support of MSMEs, the business world, and local governments Health IDR97.26 tn To address the pandemic by ensuring the quality of treatment and accelerating the containment effort Expenditure for Covid-19 Handling ■Incentives for Paramedic Death Compensation ■National Health Insurance Fee Covid-19 Task Force ■Tax Incentives in Health ■Reserve for Health Care and Vaccines ■ Vaccine and Social Assistance in 2021 Source: Ministry of Finance National Economic Recovery Programs (PEN) IDR695.2 tn Social Protection IDR234.33 tn To protect the poor and the vulnerable as the most impacted group during pandemic: ■ Conditional Cash Transfer Program ■Non Cash Food Assistance Social Assistance ■ Pre-Working (unemployment benefit) Electricity Discount Cash Transfer through Village Fund ■Internet Subsidy Sectoral & Regional Gov't IDR65.97 tn To empower sectoral and regional governments in responding COVID- 19 pandemic Line Ministries labor Intensive Program Housing Incentives ■Tourism Regional Incentive Fund Business Incentives IDR120.61 tn To provide cushion for impacted businesses through for example fiscal incentive ■Individual income tax article 21 borne Gov't; ■Import Tax Exemption on Import ■ Tax Deduction VAT Return ■Reduction of Physical Special Allocation Fund Income Tax Regional Loan Facility Assistance for Islamic Boarding Schools Installment SMEs IDR114.81 tn To maintain sustainability of MSME as critical part of economic recovery ■Interests Subsidy ■Fund Placement ■Guarantee Return Working Capital Guarantee (Stop Loss) ■Government-Borne Final Income Tax ■Investment Financing to Cooperatives Corporate Financing IDR62.22 tn To ensure the financing availability for economic recovery phase ■Labor Intensive- Fund Placement ■ State Equity Participation ■ Working Capital Investment Rp29.65T 17

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