Indonesian government is finalizing the second stimulus policy to reduce the impact of the coronavirus outbreak on the domestic economy, said the senior minister yesterday (03/11) - Photo by CMEA Office

JAKARTA (TheInsiderStories) – Indonesian government is finalizing the second stimulus policy to reduce the impact of the coronavirus outbreak on the domestic economy, said the senior minister yesterday (03/11). The contents of the economic stimulus consist of fiscal and non-fiscal incentives for exporters, importers, entrepreneurs and individual.

The coordinating minister for economic affairs, Airlangga Hartarto said, one of the goals of the second stimulus package was to provide import convenience eliminating prohibitions and restrictions for certain sectors. While, finance minister, Sri Mulyani Indrawati further added, the government also will grant a six-month tax break for employees, manufacturers, and importers, starting next month

She explained, there were around 749 HS codes of goods that were removed to becomes simpler and easier, especially import of raw materials. The ease of import will also be provided through the delay of payment of import duties for a maximum of 30 days after the transaction.

Director general for custom and excise, Heru Pambudi said, the import facilities was intended for importers classified as reputable traders, especially those included in the list of Authorized Economic Operators and main partners of his office.

On the tax-break, Indrawati ensured that the government would bear income tax article 21 as one of the incentives in the second-term of the economic stimulus package to be issued by the government. The employee tax policy borne by the government is planned to take effect for six months after the regulation was issued.

While, Hartarto revealed, the income tax incentives would be given to companies engaged in the manufacturing industry sector. On Feb. 26, the government has rolled out a Rp10.3 trillion (US$735.71 million) stimulus package in an effort to cushion the blow of the coronavirus outbreak on its economy.

The stimulus is channeled to a number of economic sectors affected by the virus and ensures that people’ purchasing power is maintained. Indrawati sees the outbreak could further weaken Indonesia’ growth to 4.7 percent in 2020 from 5.02 percent in 2019.

While, deputy minister, Suahasil Nazara, added, this fiscal stimulus aims to ensure Indonesia’ economic growth does not come under pressure amid the prospects of a global economic slowdown. The stimulus in the tourism sector, for example, is expected to balance the potential for decline due to the significant reduction in the number of foreign tourists in this year.

The stimulus is in the form of discounted airline ticket prices for 10 major tourist destinations, incentives for airlines and travel agents that bring tourists, to the policy of hotel and restaurant tax-free schemes for a certain period in these 10 tourist destinations.

“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.

But then, the government halt the policies after get critics from the society. No further information when the country will removes the suspended. 

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