The Indonesian government re-evaluates the stimulus package provided to reduce the effects of the corona pandemic…
The government plans to re-evaluate the provisions of economic stimulus packages made to counter the effects of the pandemic. The stimulus package that has been already released has not seen significant results.
The new budget includes cash incentives and training costs for two million unemployed people. After the unemployed have been trained, the Government is obligated to place the participants in companies “Those who pass the training will immediately be recruited by the company,”
Meanwhile, the government is preparing four additional fiscal stimulus volumes.
First, relaxation of income tax of 100% of workers’ income up to a limit in the manufacturing sector. Additionally, it is expected that workers in the manufacturing sector will receive additional income to maintain purchasing power.
Second, relaxation of Import Tax which is given for six months from April to September 2020.
Third, additional relaxation of Income Tax. As is the case with Import Tax relaxation, through this policy it is hoped that the industry will be able to generate additional cash flow.
Fourth, relaxation of Value Added Tax (VAT) refunds for 19 targeted sectors. VAT refunds are accelerated for six months, starting from April to September 2020.
Ivan Kanel – HDT & Partners
