Gov’t to Relax KUR and Launch Pre-Employment Card to Face Economic Pressure
Date 20 Maret 2020
In a bid to ease the economic pressure amid Covid-19 pandemic, the Indonesian Government determined to relax the Smallholder Business Credit (KUR), reduce motorcycle loans for online motorcycle taxi drivers, and launch Pre-employment Card.
Coordinating Minister for Economic Affairs Airlangga Hartarto also ensured that the Government guaranteed the availability of stock both in terms of the smooth supply of distribution and price stability for food and staples.
“Several steps have been taken by the Government together with BI (Bank Indonesia) and OJK (Financial Services Authority). The Government has issued stimulus 1 and 2 which the implementing regulations are now being finalized,” the Coordinating Minister stated online after a limited meeting, Friday (20/3).
The Government, according to Airlangga, has also conducted an in-depth study of the expansion in the related sectors including in tourism, transportation, and other sectors related to Article 21 on Income Tax, Article 22 on Import Tax, and Article 25 on Corporate Tax.
“In addition, the OJK has issued OJK Regulation on Non-Performing Loan relaxation and credit restructuring including MSMEs and KUR (Smallholder Business Credit) as part of the relaxation policy,” Airlangga said.
The capital market protocol, Airlangga said, also available. The meeting also discussed tax reduction facility. “This is currently being reviewed by the OJK and by Minister of Finance. BI has lowered the minimum statutory reserves interest rates both in foreign currency and rupiah,” he explained.
The Government, Airlangga continued, will also immediately issue Presidential Regulation on the Ease and Acceleration of the Process of Procurement of Goods and Services as a part of efforts to minimize the impact of Covid-19.
“It will include the auction, the process of importing and importing goods from abroad, the process and distribution of goods in all affected areas and other processes to support the ease and smoothness of goods flow,” Airlangga stated.
He went on to say that the OJK Chairman, Wimboh Santoso agreed to relax the provision on calculation of collectibility or the classification of motorcycle loan payments that can be extended or can be calculated for a period of 1 year.
Wimboh, Airlangga said, also asked leasing companies to refrain from using debt collectors to avoid public unrest, especially on online motorcycle taxi drivers.
The Government, Airlangga added, is also preparing a policy on KUR interest payment which is currently subsidized by 6%. “This will be relaxed, this is in line with the stimulus policy 2 of the OJK which is to relax credit under 10 billion, related to the 6%, it will be reviewed by Ministry of Finance whether this will exceed the maximum limit of Rp190 trillion which is set for the whole 2020,” he said.
President Joko “Jokowi” Widodo, the Coordinating Minister said, gave his directive that after the launching of Pre-employment Card program, it needs to be disseminated so that the first training can be carried out as early as April.
“The implementation of the program is carried out by the implementation management with 11 digital platform partners, consisting of 8 marketplaces, namely Bukalapak, MauBelajarApa, Pintaria, Ruangguru, Sekolahmu, Tokopedia, Pijar Mahir, and Sisnaker, as well as three payment partners including BNI, OVO, and LinkAja,” he said.
The program, will be implemented online and offline. “The offline one will be first started in 3 cities, including Bali, Manado, and Riau Islands before it is implemented in Surabaya, Jakarta, and Bandung. The President’s directive is to make the program accessible for various parties, including workers affected by layoffs, workers in the tourism sector, workers in the micro or small sector who are now experiencing difficulties, and other sectors,” Airlangga said. (HIM/EN)
Translated by: Fairuzzamani Inayatillah
Reviewed by: Mia M. Bonaedy