Gov’t Continues to Strengthen Policies on COVID-19, Economic Recovery Ahead of Ramadan, Eid

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 7 April 2021
Category: News
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Coordinating Minister for Economic Affairs Airlangga Hartarto gives a press conference after attending plenary cabinet meeting in Jakarta (7/04/2021)

Ahead of the holy fasting month of Ramadan and the Muslim holiday of Eid-al-Fitr (Eid Day) this year, the Government has announced it will continue to strengthen COVID-19 handling policy, as well as to maintain the momentum of Indonesian economic growth.

“President Joko Widodo (Jokowi) has ordered that this COVID-19 handling policy must be immediately implemented,” Coordinating Minister for Economic Affairs Airlangga Hartarto said Tuesday (07/04/2021) in Jakarta.

For the record, the Government previously has banned the Eid Day tradition of mudik (exodus) from 6 until 17 May this year.

Airlangga, who also helms the Working Committee for COVID-19 Handling and National Economic Recovery (PC-PEN), added that several regulations were being prepared to control COVID-19 cases, such as circular of Minister of Religious Affairs on controlling various religious activities during Ramadan amid the pandemic and circular of Head of the COVID-19 National Task Force on restriction or controlling of travel mobility and quarantine during the pandemic.

In addition, in term of economic recovery, Airlangga added, the Government continues to encourage public consumption improvement.

“President Jokowi has stated that economic development and the handling of COVID-19 must go hand-in-hand,” Airlangga said.

In the meantime, in order to improve public consumption, a number of efforts were also made by the Government, one of which is encouraging employers to provide their employees annual bonuses or locally known as Tunjangan Hari Raya (THR).

The estimated household consumption that can be encouraged by the provision of the THR is around Rp215 trillion.

The Government, Airlangga added, has also provided a variety of supports and incentives so that the business sector can provide the THR to their employees, including relaxation of Luxury Goods Sales Tax (PPnBM) for automotive industry to boost their sales, credit guarantees for businesses, which are stipulated in Regulation of Minister of Finance Number 32/PMK.08 of 2021, and also interest subsidies for People’s Business Loans (KUR).

Another measure taken by the Government, Airlangga added, is distributing social assistance, namely 10 kilograms of rice per package given to 20 million beneficiary families.

The Minister further said that the Government would also boost the distribution of the output target of the Family Hope Program (PKH), Staple Foods Card, and Direct Cash Assistance.

The estimated potential realization of the acceleration of this social protection is Rp14.12 trillion.

In addition, in order to support local products, the Government, he added, will also support National Online Shopping Day scheduled on 10 days and 5 days before Eid Day. A budget around Rp500 billion will be prepared for shipping cost subsidies. (FID/UN) (AP/EP)

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