The Main Policies of Economic Package Stage I September 2015
Date 10 September 2015
In order to stimulate national economy, President Joko Widodo, on Wednesday (9/9) afternoon launched a Policy Package under a name Policy Package Stage I, September 2015, at the Merdeka Palace, Jakarta.
President Joko Widodo mentioned 3 steps in the Package, such as: 1. To stimulate national industry competition through deregulation, debureaucratization, law enforcement and business certainty; 2. To Accelerate national strategic project by removing some obstacles, blockage in the implementation and by finishing national strategic project; and 3. To increase investment in property sector.
Coordinating Minister for the Economy Darmin Nasution who talked after President Joko Widodo announcing the Policy Package Stage I September 2015, gave specific information regarding the Policy Package, among others:
- Strengthening export financing through National Interest Account. The regulation is in Finance Ministerial Regulation on the Assignment of Indonesian Export Financing Agency (LPEI). Meanwhile, the deregulation is based on Finance Minister Decree on the Establishment of Assignment Commitee Specialized on Export, Darmin said.
The members of the commitee come from several ministeries/institutions. According to the Coordinating Minister for the Economy, the members shall have duties to ensure that the implementation of National Interest Account runs effectively. For the record, the selected project must meet with the criteria and there are 6,246 criteria.
- Setting the price of gas in certain industry in Indonesia.
- The policy to develop industries area. It is related to the Regulation of the Minister of Industry, Darmin added.
- The policy to strengthen economic function of the Cooperatives.
According to the Coordinating Minister for the Economy, the deregulation is related to the Regulation of Cooperatives and Small and Medium Enterprises Minister. There are several benefits in the deregulation, for example the function of the Cooperatives becomes clear, both in economic or social functions, since the function of the Cooperatives as main partner of micro, small and medium-sized enterprises in a region is stronger.
Improvement on capital and financial ability of the Cooperatives to develop their business as the source of people financing, becomes trading house in micro, small and medium-sized enterprises, to produce people needs in industry and export goods, including to create creative economy export products which are able to compete in local, national and global markets,Darmin said.
- The policy to simplify trade permission.
- The policy to simplify visitor visa and tourism rules.
- The policy to provide liquefied petroleum gas (LPG) to fishermen. There is a converter that enables the fishermen spend the cost efficiently. According to Coordinating Minister for the Economy Darmin Nasution, the fishermen could get benefits from the policies. In one fishing time, small fishermen needs 30 litres of diesel fuel with estimated cost of Rp 6,900/litre and trough the policy, they could save Rp 144,900.
That means, with Rp62,100 of diesel fuel as a capital, fisherman could get 10 kg of fish. If we take assumption that the fish price is 20,000/kg, they could get additonal income compared to previous income as much as Rp.137,900. This policy obviously boosts the quantity of national fish production and improve fishermens prosperity, Darmin said.
- The stability of food commoditys price, particulary beef price. According to Darmin, this point means that the range of beef selling areas and beef imported countries will be expanded. Thus, it will create a more competitive price of beef or cattle, as well as to provide an easy way for the Government to stabilize the stock and beef price.
- To protect people who have lower income and to stimulate rural economy.This was mentioned by the President as the acceleration of disbursement of village funds, as well as to give direction to use the Village Fund itself, Darmin said.
According to Darmin Nasution, the deregulation consists of special letters regarding Village Fund. There are joint ministerial decree (SKB) from 3 ministeries, namely Ministry of Home Affairs, Ministry of Villages, Disadvantaged Regions and Transmigration and Ministry of Finance that made regulation and simplification so that the regulation can be changed if needed by using the template and do not need mid-term village development plan (RPJMDes) (just use the template and make some adjustment).
- Distributing Raskin or Rice for the poor for the 13th and 14th month. (ES/Humas)(RAS/MMB/YM-Naster/Sy)