Indonesian government raises funds US$2.5 billion from the issuance of global SUKUK, said finance minister yesterday (05/17) - Photo: Privacy

JAKARTA (TheInsiderStories) – President Joko Widodo has signed a presidential decree number 4 of 2020 concerning Refocusing Activities, Budget Reallocation and Procurement of Goods and Services in the framework of Accelerating the Handling of COVID-19, it said last weekend.

The coordinating minister for economic affairs, Airlangga Hartarto said, the decree would cover the process of procurement of goods and services or auctions, the process of importing goods from abroad, the process of distribution and distribution of goods to affected areas, and other processes to support the ease and smoothness of goods.

As reported the virus outbreak has give impacted to the domestic economy. Even, finance minister Sri Mulyani Indrawati estimated, the economic growth could lowering to zero percent if the government do nothing. Until Sunday, total positive cases in the country recorded over than 514 and fatalities 48.

Through the decree, the head of state urged the officials, to speed ​​up the procurement of goods and services to accelerate the handling of COVID-19 by facilitating and expanding access according to the Disaster Management Law, Disaster Management, Procurement of Government Goods and services, and the Presidential Regulation on Organizing for Disaster Management in certain circumstances.

It also said, the minister of home affairs to take further steps in accelerating the use of the regional budget. In addition, public works and public housing ministry will accelerates the preparation and construction of infrastructure, while the health ministry expedites the registration of medical devices and medicine to handle the COVID-19.

Last weekend, the Financial Services Authority (FSA) also announced the economic stimulus for non-bank financial industry sector by loosening the terms of payment obligations. Earlier, the regulator issues, the stimulus provisions for the banking sector, which took effect from March 13, 2020 to March 31, 2021.

The rules is expected to be a countercyclical impact of the coronavirus spreading and it can encourage the optimization of the intermediation function of local bank, maintain financial system stability, and support the economic growth.

“We have expanded the stimulus, not only to bank but also to financial institutions or leasing companies. The goal is that the business sector is still running amid the spread of COVID-9,” said the chairman, Wimboh Santoso said in an official statement.

The stimulus  is aimed at debtors in sectors affected by the spread of the virus, especially small, medium and micro companies debtors with interest for loans up to Rp10 billion (US$645,161). Debt restructuring by banks without credit ceiling limits.

In the Capital Market, Santoso stated, is still in a state of distress due to negative sentiments about the spread of the virus. He asserted, the investors do not panic caused Indonesia’ economic fundamentals are still good.

Recently, FSA has applied various capital market policies through the Indonesia Stock Exchange like the prohibition of short selling and the implementation of auto rejection, halt trading, and and provides convenience to buy back shares without holding a shareholders meeting beforehand. The regulator also relaxed the time limit for the submission of financial reports and the implementation of the shareholders meeting for the issuers.

US$1: Rp15,500

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