Indonesian government finalizes a second stimulus package to combat the spread of COVID-19 to the economy, said senior minister today (03/04) - Photo by President Office

JAKARTA (TheInsiderStories) – Indonesian government finalizes a second stimulus package to combat the spread of COVID-19 to the economy, said senior minister today (03/04). The measure follows the unveiling of a Rp10.3 trillion (US$735.71 million) stimulus package last week.

According to the coordinating minister for economic affairs, Airlangga Hartarto, the stimulus package would be worth more than Rp10 trillion to support the trade. While, industry minister, Agus Gumiwang Kartasasmita added, the government considers to lower import duties for raw materials for exporters and importers

In his direction for trade ministry’ official today, President Joko Widodo urged the institution to mitigate the impact of the weakening global economy amid a coronavirus outbreak on national economic growth and stability. He asserted, in the current conditions, a number of policies are needed to respond to changes in the current global economic situation.

“The challenges we face today are really not easy. The trade war has not ended yet, and now the corona virus appears, which adds to the difficulty of the world economy,” he told the officials at the State Palace on Wednesday.

The impact of the spread of the coronavirus globally is truly felt by all countries, including Indonesia. However, the President stressed his staff to stay focused on working, maintain optimism, take advantage of opportunities, and find a way out of every obstacle encountered.

“Even though there are very heavy pressures like this, we must be able to solve the existing problems,” said the head of state.

Widodo also considers that there is a need for relaxation in the import of raw materials for industrial sector. The reason is that the spread of the virus has disrupted the operations of many companies due to a shortage of raw materials, both import and export.

He continued, the supply of raw materials, which is currently hampered due to the COVID-19 if not immediately responded properly will ultimately hamper the production sector. This has implications for rising prices which in turn will raise inflation, he adds.

He appreciated Bank Indonesia and Financial Service Agency moved quickly by issuing further steps to strengthen the policy to mitigate the impact of the virus. The moves then received a positive market response and supported the strengthening of the Rupiah and the Jakarta Composite Index.

He hopes the similar mitigation measures comes from the government side. Earlier, finance minister, Sri Mulyani Indrawati rated the virus could further weaken Indonesia’ growth to 4.7 percent in 2020 from 5.02 percent in 2019.

While, deputy minister, Suahasil Nazara, added, the fiscal stimulus aims to ensure Indonesia’ economic growth does not come under pressure amid the prospects of a global economic slowdown.

“So we hope that economic activity does not go down, the economy continues to spin like hotels can still operate, airlines can also continue to operate and so that we hope it can replace the potential for economic decline that impacted Indonesia,” he stated.

Written by Staff Editor, Email: theinsiderstories@gmail.com