An Indonesian Red Cross personnel sprays disinfectant inside Istiqlal mosque in Jakarta (Photo: VNA) Jakarta (VNA) – The Indonesian government announced on March 13 that it will allocate 120trillion rupiah (8.1 billion USD) from the state budget to stimulate theeconomy by providing tax incentives and subsidies for workers, businesses andfamilies affected by the COVID-19 outbreak.
Finance Minister Sri Mulyani Indrawati said that workers in the manufacturing whomake 200 million rupiah or less a year will be exempted from income taxes forsix months.
The government also cuts the corporate income tax rate by 30 percent for sixmonths and deferred import tax payments for six months for 19 manufacturing industries.It will also speed up repayments of overpaid tax without initial audits.
Besides, the government has introduced a non-fiscal stimulus package that aimsto ease current restrictions and accelerate export-import activities.
In the financial sector, the Financial Services Authority (OJK) announced it willallow banks to issue new policies to stimulate economic growth, especially forborrowers affected by the COVID-19 outbreak, including micro, small and medium sizedenterprises (MSMEs). The policies include the relaxation of credit assessmentand restructuring requirements.
According to Minister Indrawati, the stimulus package is not the lastannouncement amid the outbreak, and her ministry will assess the situation tomitigate and minimise the impacts.
Last month, Indonesia announced its first stimulus package worth 10.3 trillionrupiah to support consumer spending and tourism./.
Finance Minister Sri Mulyani Indrawati said that workers in the manufacturing whomake 200 million rupiah or less a year will be exempted from income taxes forsix months.
The government also cuts the corporate income tax rate by 30 percent for sixmonths and deferred import tax payments for six months for 19 manufacturing industries.It will also speed up repayments of overpaid tax without initial audits.
Besides, the government has introduced a non-fiscal stimulus package that aimsto ease current restrictions and accelerate export-import activities.
In the financial sector, the Financial Services Authority (OJK) announced it willallow banks to issue new policies to stimulate economic growth, especially forborrowers affected by the COVID-19 outbreak, including micro, small and medium sizedenterprises (MSMEs). The policies include the relaxation of credit assessmentand restructuring requirements.
According to Minister Indrawati, the stimulus package is not the lastannouncement amid the outbreak, and her ministry will assess the situation tomitigate and minimise the impacts.
Last month, Indonesia announced its first stimulus package worth 10.3 trillionrupiah to support consumer spending and tourism./.
VNA
