Inflation Control and Financial Facilities Strategy
Government Measures to Mitigate Covid-19 Risk
Fiscal and Non Fiscal Stimuli
Fiscal Stimuli Phase 1
1 Brought forward the launch of the Pre-Employment Card in
Bali, North Sulawesi and the Riau Islands.
Fiscal Stimuli Phase 2
1
Relaxation of Income Tax (PPh Article 21).
2
Increased disbursements of the Noncash Food Assistance
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
Provided incentives for domestic and international travellers.
4 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.
Subsidised or provided grants totalling IDR3.3 trillion to local
7 governments affected by lower tax revenues food service
activities.
Source: Bank Indonesia
Non-Fiscal Stimuli
1
Reduce and simplify restrictions on export activities to
maintain export performance and competitiveness.
2
Reduce and simplify restrictions on import activities to ensure
the availability of raw materials.
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