Jaga Ekonomi di Tengah Covid-19, Pemerintah Siapkan Kebijakan Fiskal & Non Fiskal - iNews Pagi 12/03

Summary

The government plans to introduce additional stimulus measures to support the national economy amid the COVID-19 pandemic. These measures include both fiscal and non-fiscal policies, such as income tax relief, deferred corporate taxes, and simplified export-import regulations. The goal is to ease the burden on industries, particularly manufacturing, by minimizing costs and streamlining regulations. More than 749 HS-codes will be eliminated to simplify import procedures, and some regulations, particularly those related to trade and the food and drug agency, will be simplified or eliminated. These measures aim to provide essential support for businesses in a challenging economic climate.

Takeaways

• 😀 The government plans to release additional stimulus measures to support the domestic economy amid the coronavirus pandemic.
• 😀 The stimulus package will include both fiscal and non-fiscal policies, effective for the next six months.
• 😀 Fiscal stimulus measures will include tax breaks, such as the government covering income tax (PPH 21), import tax (PPH 22), and deferring corporate income tax (PPh 25) for manufacturing industries.
• 😀 Non-fiscal stimulus measures will focus on simplifying export and import regulations to boost trade.
• 😀 The government aims to minimize the burden on industries, giving them space to operate in the current challenging environment.
• 😀 The government's goal is to ensure that industries, especially in tight conditions, can manage their operations with reduced burdens.
• 😀 Simplifications will be made to regulations in several areas, including trade and the food and drug regulatory agency (BPOM).
• 😀 Over 749 HS-codes (harmonized system codes) will be streamlined, with more than 50% of these codes being removed to simplify import processes.
• 😀 The simplification process is in its final stages, with adjustments and reductions to be finalized soon.
• 😀 Discussions on the stimulus package and regulatory changes will continue in a limited meeting with the President later this week.

Q & A

What is the primary purpose of the additional stimulus being planned by the government?

The government plans to introduce additional stimulus to help maintain the national economy amid the impacts of the coronavirus pandemic.

What are the fiscal measures included in the government’s stimulus plan?

The fiscal measures include the government covering the income tax (PPH 21), postponing import taxes (PPH 22), and deferring corporate income tax (PPh 25) for manufacturing industries.

What non-fiscal measures are part of the government’s stimulus plan?

The non-fiscal measures involve simplifying export and import regulations, with a focus on streamlining procedures for raw material imports and reducing regulatory burdens.

How long will the government’s stimulus measures be in effect?

The stimulus measures are set to be in effect for the next six months.

What is the objective behind providing stimulus and incentives to industries?

The objective is to support industries by reducing their burdens and providing more operational space during the challenging economic conditions caused by the pandemic.

What is meant by simplifying export and import regulations?

Simplifying export and import regulations means reducing bureaucratic procedures, making it easier for businesses to import raw materials and engage in trade.

What specific regulations will be tested for simplification or elimination?

Regulations related to various ministries, such as Trade and BPOM (Indonesian Food and Drug Authority), will be tested for simplification, and certain HS codes will be eliminated to ease the process.

How many HS codes are being considered for elimination under the stimulus plan?

Over 749 HS codes are being considered for elimination, which represents more than 50% of the current codes.

What is the status of the government’s plans for simplifying regulations?

The government is finalizing the regulations that will be simplified or eliminated to help ease trade and manufacturing processes.

Why is the government focusing on simplifying regulations for the manufacturing industry?

The government aims to provide relief to the manufacturing sector, which is under significant pressure, by reducing regulatory hurdles and facilitating easier access to raw materials for production.