Gov’t Weighing Options to Stimulate Economy Amidst Covid-19 Outbreak

Coordinating Minister for Economic Affairs after attending a limited meeting at the President’s Office, Jakarta, Wednesday (11/3). (Photo by: Rahmat/PR)

The Government has announced it continues to monitor economic developments and preparing a stimulus package in anticipation of weakening economy against the backdrop of the coronavirus pandemic.

“The Government is preparing a stimulus package including fiscal and non-fiscal incentives. Minister of Finance is calculating fiscal incentives. Hopefully, shortly we will see how it works,” Coordinating Minister for Economic Affairs Airlangga Hartarto told reporters after a limited meeting at the Presidential Office, Jakarta, Wednesday (11/3).

The drop in fuel prices, he added, has also led to the drop in prices of other commodities; hence, the Government will evaluate the condition and estimate how long it will persist.

“Once the prices are stable, the Government will take measures, including related to palm oil and gas oil given that the price difference of two commodities is widening amidst falling global crude oil prices,” the Minister said.

As for non-fiscal incentives, Airlangga continued, it will include ease of import, integration of systems for imports and exports, and others.

“Fiscal incentives, as Finance Minister said, are related to temporary exemption of income tax for workers (PPh21) and taxes paid in installments (PPh25). We are currently calculating it,” Airlangga said. (FID/EN)

Translator: Muhardi

Reviewed by: M. Ersan Pamungkas