Gov’t Earmarks Rp451 Trillion for National Economic Recovery Program

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 16 Januari 2022
Category: News
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Cabinet Secretary Pramono Anung accompanied by Deputy for Cabinet Work Support Thanon Aria Dewangga during a limited meeting on Sunday (1/16). (Photo: Agung/PR)

The Government has announced that it has allocated a budget of Rp451 trillion for the National Economic Recovery (PEN) program this year that will be used for health sector, social protection, and fiscal facilities for a number of sectors.

“The President has approved several programs related to the PEN with a budget of Rp451 trillion and is divided into three aspects, namely for health sector, social protection, and fiscal facilities for several sectors in MSMEs and corporations,” said Coordinating Minister for Economic Affairs Airlangga Hartarto in a press statement after attending a limited meeting on evaluation of public activity restrictions (PPKM) policy, Sunday (1/16).

According to Airlangga, the Government will extend the property fiscal incentive in the form of government-borne VAT until June this year.

“The President has approved matters related to property fiscal incentives or the Government-borne value-added tax. The extension will be carried out until June 2022,” he explained.

For flats / houses with a value of Rp2 billion, 50 percent of the government-borne VAT is given and calculated from the start of the contract and it is hoped that the house can be completed within nine months.

As for properties whose selling price is Rp2-5 billion, they will receive 25% of the government-borne VAT.

The next program is the provision of luxury goods sales tax (PPnBM) tariff facilities, specifically for the automotive sector with the sales price below Rp200 million, such as low-cost green cars or LCGC.

“The current PPnBM is 3 percent. In the first quarter, the 3 percent is borne by the Government. In the second quarter, 2 percent is borne by the Government and in the third quarter, 1 percent borne by the Government. In the fourth quarter, it is paid in full in accordance with the tariff which is 3 percent,” Airlangga said.

As for vehicles with a price of Rp200-250 million, Airlangga said the PPnBM tariff is 15 percent in which 50 percent of the tariff is borne by the Government in the first quarter.

“In the first quarter, 50 percent was borne by the Government so that people paid 7.5 percent and in the second quarter they have to pay in full at 15 percent,” he said.

Another program approved by the President is the front loading strategy for social assistance  for street vendors and fishermen.

“The number of participants is estimated to reach 2.76 million people, consisting of 1 million street vendors and shop owners and 1.76 million fishermen / residents under the category of extreme poverty. The amount given is Rp600 thousand per recipient and this will be implemented soon. The President has also agreed that for social protection, a front loading will be carried out in the first quarter,” Airlangga concluded. (DND/UN) (EST/EP)

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