{"id":189951,"date":"2020-05-05T14:20:21","date_gmt":"2020-05-05T07:20:21","guid":{"rendered":"https:\/\/setkab.go.id\/?p=189951"},"modified":"2020-05-05T14:20:21","modified_gmt":"2020-05-05T07:20:21","slug":"govt-issues-regulation-on-state-financial-policy-and-financial-system-stability","status":"publish","type":"post","link":"https:\/\/setkab.go.id\/en\/govt-issues-regulation-on-state-financial-policy-and-financial-system-stability\/","title":{"rendered":"Gov\u2019t Issues Regulation on State Financial Policy and Financial System Stability"},"content":{"rendered":"<div id=\"attachment_189952\" style=\"width: 910px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-189952\" class=\"size-full wp-image-189952\" src=\"https:\/\/setkab.go.id\/wp-content\/uploads\/2020\/05\/chair.jpg\" alt=\"\" width=\"900\" height=\"600\" \/><p id=\"caption-attachment-189952\" class=\"wp-caption-text\">Minister of Finance Sri Mulyani Indrawati attends a working meeting with the House budget committee (Banggar), Monday (4\/5). (Photo by: Ministry of Finance).<\/p><\/div>\n<p>In a bid to safeguard national economy and stability of the country\u2019s financial system, the Government has issued Government Regulation in lieu of law (Perppu) Number 1 of 2020 on State Financial Policy and Stability of Financial System for the Management of Coronavirus Disease 2019 (COVID-19) and\/or Encounter Threats to National Economy and\/or Stability of Financial Systems.<\/p>\n<p>Minister of Finance Sri Mulyani Indrawati made the statement at a working meeting with the House budget committee (Banggar) on the Submission of Draft Regulation on the Stipulation of Government Regulation in lieu of law (Perppu) Number 1\/2020 through a video conferencing, Monday (4\/5).<\/p>\n<p>&#8220;The Perppu is issued due to widespread COVID-19 threats that have affected the health sector, socio cultural-related sector, as well as the economic and financial sector,&#8221; she said.<\/p>\n<p>The Minister went on to say that the regulation is expected to mitigate the threats imposed by the COVID-19 pandemic and reduce the impacts that it brings.<\/p>\n<p>&#8220;We will not let the nation and the country collapse due to the condition of its socio-economic and financial system,&#8221; Sri said.<\/p>\n<p>The Perppu, Sri Mulyani continued, is needed so that the Government and the authority can take extraordinary actions, including to widen budget deficit and to address other matters in maintaining financial sector stability.<\/p>\n<p>The Minister also said that the regulation specifically regulates state financial policy and financial system stability policy in connection with the management of COVID-19 pandemic.<\/p>\n<p>&#8220;In the field of state finances, the COVID-19 pandemic is bringing a significant impact on the increasing number of casualties, corporate casualties, and laid-off workers. This have affected state revenue,&#8221; the Minister added.<\/p>\n<p>The state finances, she added, should protect the people; thus, the budget deficit limit will be adjusted to exceed 3 percent.<\/p>\n<p>Sri Mulyani also said that the Government will take anticipatory measures by making mandatory spending adjustments so that the State Budget and regional budget can be used in more flexible ways for handling the COVID-19 threats,&#8221; Sri Mulyani said.<\/p>\n<p>The Perppu, she continued, also regulates the implementation of national economic recovery program, adding that it will combine the protection from economic shocks from the pandemic and the preparation of economic recovery.<\/p>\n<p>The Perppu will also prevent the implications of job creation industry in the real sector and threats in the financial sector, she added.<\/p>\n<p>&#8220;In the Financial System Stability Committee (KSSK) policy, every meeting should be attended physically. However, the Perppu allows the meeting to be carried out through video conferencing,&#8221; the Minister said.<\/p>\n<p>The Perppu will also broaden and strengthen the authority of central bank Bank Indonesia (BI) or specific purposes in the terms of long-term state securities purchased intended as a source of the State Budget for the Government related to economic recovery.<\/p>\n<p>&#8220;The Perppu will authorize the Deposit Insurance Corporation (LPS) and the Financial Services Authority (OJK) to prevent risks that endanger stability of the financial system, especially in the field of banking and banking customer protection,&#8221; the Minister said.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Translated by: Syarifah Aisyah<\/strong><br \/>\n<strong>Reviewed by: Lulu Wuliarti<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a bid to safeguard national economy and stability of the country\u2019s financial system, the Government has issued Government Regulation in lieu of law (Perppu) Number 1 of 2020 on State Financial Policy and Stability of Financial System for the Management of Coronavirus Disease 2019 (COVID-19) and\/or Encounter Threats to National Economy and\/or Stability of [&hellip;]<\/p>\n","protected":false},"author":43,"featured_media":189952,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[77,66],"tags":[],"class_list":["post-189951","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-uncategorized-en"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.1 (Yoast SEO v26.1.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Gov\u2019t Issues Regulation on State Financial Policy and Financial System Stability - Sekretariat Kabinet Republik Indonesia<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/setkab.go.id\/en\/govt-issues-regulation-on-state-financial-policy-and-financial-system-stability\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Gov\u2019t Issues Regulation on State Financial Policy and Financial System Stability - Sekretariat Kabinet Republik Indonesia\" \/>\n<meta property=\"og:description\" content=\"In a bid to safeguard national economy and stability of the country\u2019s financial system, the Government has issued Government Regulation in lieu of law (Perppu) Number 1 of 2020 on State Financial Policy and Stability of Financial System for the Management of Coronavirus Disease 2019 (COVID-19) and\/or Encounter Threats to National Economy and\/or Stability of [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/setkab.go.id\/en\/govt-issues-regulation-on-state-financial-policy-and-financial-system-stability\/\" \/>\n<meta property=\"og:site_name\" content=\"Sekretariat Kabinet Republik Indonesia\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/id-id.facebook.com\/Setkabgoid\" \/>\n<meta property=\"article:published_time\" content=\"2020-05-05T07:20:21+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/setkab.go.id\/wp-content\/uploads\/2020\/05\/chair.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"900\" \/>\n\t<meta property=\"og:image:height\" content=\"600\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Office of Assistant to Deputy Cabinet Secretary for State Documents &amp; 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