JAKARTA (TheInsiderStories) – Indonesian government considered to revises the 2020 State Budget along with strong impact from COVID-19 impacts, said finance minister today (03/24). She said, followed the current condition, most of major macro assumption will changes, including the possibility to widens the budget deficit.
Minister of finance, Sri Mulyani Indrawati admitted, President Joko Widodo has communicated with House of Representative and Auditor Board about the plans. To run the program, she continued, the government needs legal basis like regulations in lieu of laws or other rules.
“The 2020 state budget will surely undergo a major change, especially macro assumption. What we discussed with the council was to prepare rules in situations of urgency. That is why the government can propose regulations to replace the 2020 State Budget law,” she told reporters through video conference.
Right now, said Indrawati, her staff is identifying and try to respond the people, business world, and regional government needs to cover the COVID-19 impact but still inline with legal corridors. The proposals will later be decided by the president before hand it offer to parliament.
In the official statement released on Monday (03/23), chairman of budget committee at the Indonesian parliament, M. Said Abdullah stated, the government needs to immediately revises Law Number 17 of 2003 concerning on State Finance to provide a relaxed budget deficit from 3 to 5 percent and a fixed tax to gross domestic products (GDP) ratio of 60 percent.
The regulations in lieu is needed by the government to readjust the existing bill. He also proposed, the government regulating the 2020 State Budget law and individual and corporate income tax act to accommodates the government needs to run the economic stimulus during the pandemic.
“The next goal is to ensure the implementation of the Social Savety Net program to help people’ lives,” he wrote by adding the third objective is to support the Micro, Small and Medium Enterprises and informal sectors to be able to survive facing difficult economic conditions.
by Linda Silaen, Email: email@example.com