House Approves Government Regulation in Lieu of Law 1/2020
Date 13 Mei 2020
The Bill of Government Regulation in Lieu of Law Number 1 of 2020 has been officially approved as Law by the House of Representatives (DPR) on 12 May 2020.
Minister of Finance, in a press release, said that to prevent moral hazard, Article 12 (1) of the Government Regulation in Lieu of Law regulates that the implementation of state financial policies and the measures stipulated in the Government Regulation in Lieu of Law should comply with good governance principles.
Minister of Finance also said that Government Regulation in Lieu of Law Number 1 of 2020 is expected to be a strong legal basis for the Government and related institutions to continue measures to overcome the COVID-19 pandemic in the health sector, social and economic sector and financial system stability.
Minister of Finance went on to say that Government Regulation in Lieu of Law Number 1 of 2020 is also expected to benefit medical workers, communities, and business actors in the real sector and the financial sector which include micro businesses, small businesses, medium businesses, large businesses, and cooperatives.
For the record, the Government has issued several policies to overcome the COVID-19 pandemic, including:
- Additional budget for prevention of COVID-19 in the health sector amounting to Rp75 trillion, including the provision of incentives for medical doctors and nurses, death benefit, purchase of medical devices including Personal Protective Equipment (PPE), face masks, hand sanitizers, ventilators, as well as hospital and various quarantine facilities;
- The Government has also provided additional social assistance of Rp100 trillion to the people affected by COVID-19. More than 29 million families or more than 50% of the Indonesian people get the Government assistance in the form of cash, groceries, exemptions and discounts on electricity bill, and pre-employment card;
- The Government also provides tax relaxation incentive, and assistance for more than 60 million MSMEs in the form of postponement of installments, interest subsidies and additional working capital;
- The Government also draws up measures and policies in the framework of the National Economic Recovery program for business actors in the real sector and financial sector which include micro businesses, small businesses, medium businesses, large businesses, and cooperatives whose business activities are affected by COVID-19.
In the event that Government Regulation in Lieu of Law Number 1 of 2020 comes into force, several Articles in several existing Laws are declared null and void, in the context of state financial policy for handling COVID-19 and/or in the context of overcoming threats that endanger the national economy and/or financial system stability
There are 24 implementing regulations that must be completed by the Government in implementing the Government Regulation in Lieu of Law Number 1 of 2020. As of 9 May 2020, 14 regulations have been completed, 8 regulations are in the drafting stage, and 2 regulations are in the next stage. In the context of dealing with COVID-19 and its impact, the Government has issued implementing regulations of the Government Regulation in Lieu of Law Number 1 of 2020 and other regulations. (Bureau of Communication and Information Services of the Ministry of Finance/EN)
Translated by: Ridwan Ibadurrohman
Reviewed by: Mia Medyana