Monday, 16 March 2020 09:55

The Government Launches the Second Stimulus Package to Overcome the Impact of Covid-19

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The government announced a second economic stimulus to overcome the impact of the spread of the Corona virus -Covid-19 to the manufacturing industry sector and overall economic activity. Coordinating Minister of Economic Affairs, Airlangga Hartarto at a press conference in Jakarta, Friday (13/3) as released by Antara, said that fiscal stimulus such as Income Tax (PPh) in Article 21 is borne by the government for the manufacturing sector for six months and for workers with income gross no more than Rp200 million per year. Other sectors that get facilities are Taxpayers who obtain Import Importance for Export Purpose (KITE) and KITE Small and Medium Industry. The purpose of this stimulus is to provide additional income for workers in the manufacturing sector to maintain purchasing power.

Based on this stimulus, the amount of the income tax value borne by the government reached Rp8.6 trillion. Then, the exemption of import tax article 22 for six months for 19 manufacturing industry sectors affected by COVID-10 aims to keep the pace of imports maintained. In addition, there is a reduction in article 25 income tax by 30 percent for six months for 19 manufacturing industry sectors to maintain domestic economic stability and improve export performance. The value of the income tax delays for this stimulus reaches Rp4.2 trillion. The government also provides an accelerated six-month Value Added Tax (VAT) restitution for exporters without restrictions and non-exporters with a maximum value of Rp5 billion in restitution. With the acceleration of restitution given up to Rp1, 97 trillion, taxpayers can be more optimal in cash management.

On this occasion, the government also formulated a non-fiscal stimulus in the form of simplifying or reducing limited export and import prohibited goods to facilitate the flow of goods. Another non-fiscal stimulus is the acceleration of the export-import process for reputable traders or reputable entrepreneurs and improving the National Logistic Ecosystem. According to Minister Airlangga Hartarto, the impact on the economic sector was inevitable.

Meanwhile, Minister of Finance, Sri Mulyani ensured that this second stimulus is not the last step taken by the government. This is because the government and the relevant authorities continue to monitor the developments and the current economic situation that is still dynamic. The government also opens itself to the situation and continues to prepare policy instruments to mitigate and minimize impacts, whether it's for entrepreneurs, companies, corporations or from the public side.

Read 113 times Last modified on Tuesday, 17 March 2020 11:27