Gov’t to Draft Fiscal Policies 2021

Budget to fund the handling of COVID-19 and the National Economy Recovery Budget. (Photo by: Ministry of Finance).

Responding to the impacts of COVID-19, the Government has made some breakthrough policies to accelerate social and economic recovery, particularly in the making of economic policies of 2021.

In order to realize this, the Government has made some efforts, such as preparation for the new normal, acceleration  of social and health recovery, acceleration of economic recovery, and the making of policies to maintain fiscal incentives while seeking other tax bases.

The statement was made by Minister of Finance Sri Mulyani Indrawati during a Working Meeting between Minister of Finance, Minister of National Development Planning/ Head of the National Development Planning Agency (Bappenas), Senior Deputy Governor of Bank Indonesia, and Budget Committee of the House of Representatives on the State Budget Plan for 2021 Budget Year and the 2021 Government Work Plan.

“As Indonesia’s digital economy grows, we will impose income tax to that sector as the new tax base. In addition, core tax system will be carried on to improve national tax collection,” she said.

In order to improve the quality of healthcare services, education, governance, and public services in 2021, Ministry of Finance and Bappenas will continue with the optimization of information technology, which has been implemented starting this year.

“For that reason, investment in information technology sector and its supporting infrastructures will be the focus of the Government,” the Minister stated.

In addition, acceleration of social and economic recovery and economic reform towards an advanced Indonesia in 2021 covers reforms in healthcare, social security, education, industry, cash transfer and village funds programs, taxation, and budgeting.

“National healthcare system will also become our focus. Next year’s budget cannot be compared with this year’s since we have to allocate budget for COVID-19 handling. Nevertheless, we will continue to support the acceleration of COVID-19 mitigation, the synergy between Central and regional governments, the implementation of reforms in national healthcare network to support universal health coverage and improve health security, as well as to develop an excellence generation,” she said. (Ministry of Finance PR/EN)

Translated by : Rany Anjany
Reviewed by: Mia Medyana