VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

Illustration - Deferring debt repayment, promoting tax compliance, ending tax incentives, clamping down on corruption, and tightening bureaucratic spending are some ways the government can cut its debt burden, an economist has said. (ANTARA/REUTERS/Rick Wilking/pri) - 

Center of Economic and Law Studies (Celios) director Bhima Yudhistira has proposed five measures to mitigate and control rising government debt.

"To prevent debt from increasing further (the government) should first hold negotiations on the debt (and) soon,” he said here on Saturday.

The negotiations may lead to deferred debt repayments, particularly due to the COVID-19 pandemic, he added.

If Indonesia has a heavy debt burden with annual interest amounting to 373 trillion Indonesian rupiahs, it can request creditors to defer interest payment until 2022 or 2023 due to the pandemic, he suggested.

Second, the government must raise the tax ratio by promoting tax compliance, among other things, Yudhistira said.

Third, the government must stop providing tax incentives, particularly to sectors that have received a stimulus though it has not been effective, he advised.

Fourth, the government must move to restrict corrupt attitudes to ensure taxation rules are upheld because corruption can hurt tax receipts, he said.

“This (corruption) also harms tax receipts, which will eventually add to the burden between the addition of debt and the obligation of debt repayment," he explained.

And finally, the government can tighten bureaucratic spending, including personnel and capital spending, Yudhistira advised.

"Non-essential spending such as official travel can be slashed because fiscal room must be kept in such a way as to allow more urgent spending," he pointed out//ANT

Spokesperson for the Industry Ministry, Febri Hendri Antoni Arif. (ANTARA/HO-Biro Humas Kementerian Perindustrian) - 

The Industry Ministry is expecting the policy fixing the gas price at US$6 per metric million British thermal units (MMBTU) for the industrial sector to boost tax receipts and investment.

The seven industrial sectors that have been granted the gas price adjustment facility at US$6 per mmbtu will support the manufacturing industry’s contribution to tax receipts, spokesperson for the Industry Ministry, Febri Hendri Antoni Arif, said in a written statement issued on Saturday.

The manufacturing industry contributes significantly to the economy through tax receipts, among other things, he added.

In May, 2021, the manufacturing industry’s contribution to tax receipts grew 42.24 percent compared to 10.17 percent in April, 2021. On a yearly basis, the manufacturing industry’s contribution to tax receipts also swelled by 5.31 percent in the year ended May 31, 2021.

The seven industrial sectors that have been extended the gas price adjustment facility produce fertilizers, oleo chemicals, ceramics, petrochemicals, steel, glass, and rubber gloves, Arif said. The seven industrial sectors comprise 176 industries, he informed.

Tax receipts from the seven industrial sectors have shown an increase every year, he added.

For instance, corporate income tax receipts, filed under Article 21 (PPh 21) of the income tax law, from the industrial sector rose to Rp3.3 trillion in 2019 and further climbed to Rp3.4 trillion in 2020.

“This also shows a multiplier effect that industries receiving certain gas price adjustment facilities were aggregately able to maintain the number of employees during the COVID-19 pandemic and reduce the number of laid-off workers,” he said.

Income tax under Article 22 on the export of commodities from the seven industrial sectors also increased, suggesting that the exports and competitiveness of the industries receiving the gas price adjustment facility also strengthened, he noted.

Meanwhile, income tax under Article 22 on imports dropped due, in part, to a decline in the import of raw materials for industries, Arif said. Many industries have been using local raw materials as substitutes for imported raw materials, he added//ANT

President Jokowi during a dialog with the Regional Police Chief and regional leaders via video teleconference while observing the COVID-19 mass vaccination at Bhayangkara Square, Jakarta, Saturday (6/26/2021). (ANTARA/Indra Arief) - 

President Joko Widodo (Jokowi) has called upon local governments to double the COVID-19 vaccination target to expedite the realization of herd immunity.

Jokowi made the statement during a dialog with regional police chiefs and regional leaders via video teleconference while observing vaccinations at the Bhayangkara Square here on Saturday.

The president sought information regarding the vaccination in Central Java from the province’s Regional Police Chief Inspector General Ahmad Luthfi. The inspector general explained that the COVID-19 vaccination target within the Central Java Regional Police on Saturday had reached 141 thousand vaccine recipients.

"Are you ready to double the vaccination target?" the president asked to which Luthfi agreed.

The president will thereafter instruct Health Minister Budi Gunadi Sadikin to boost supply of the COVID-19 vaccine to Central Java.

"Good, the health minister will prepare the vaccine," the president remarked.

The president then posed the same question to Head of the North Sumatra Regional Police, Inspector General of Police Panca Putra.

Inspector General Putra revealed that vaccination was conducted on Saturday by the police in collaboration with the North Sumatra regional government, targeting 66,790 registered recipients. Some 121 thousand vaccine doses were received for inoculation until June 30, 2021. Meanwhile, COVID-19 vaccination will continue to be conducted in North Sumatra.

"Are you ready to double the vaccination target?" the president asked.

"We are ready, president," the police replied.

The president then threw the same question at the East Kalimantan Regional Police Chief Inspector General of Police Herry Rudolf Nahak.

"Are you ready to double the vaccination target?" the president asked.

"I am ready, president. As the people are also waiting for the vaccination," the East Kalimantan police chief replied.

The head of state lauded the mass COVID-19 vaccination conducted at various Regional Police Headquarters and Regional Military Command (Kodam) in several regions this Saturday.

"I would like to thank you for the mass vaccination agenda that was held simultaneously this morning at all Regional Police, Kodam, in collaboration with the local governments. I hope that starting today, the target of one million vaccines for all of Indonesia can be continued until July and August. We will increase the target to double the current target," the president emphasized//ANT

A worker checks oxygen concentrators at the Lebak Buluk Street, South Jakarta, on Friday (Jun 24) ANTARA FOTO/Reno Esnir/aww - 

The Jakarta Provincial Health Office has made assurance of sufficient stocks of oxygen concentrators in the wake of a spike in the number of COVID-19 cases in the capital in recent weeks.

Head of the Jakarta Provincial Health Office Widyastuti confirmed on Saturday that her office had coordinated with relevant agencies to ensure the supply of oxygen concentrators to hospitals.

"We have coordinated with the Industry, Trade, and Small and Medium Business Office and oxygen suppliers and producers. In essence, oxygen is produced in adequate quantities," Widyastuti remarked while observing the COVID-19 vaccination of residents at the Gelora Bung Karno Main Stadium in Jakarta.

The health office is also cooperating with suppliers of oxygen concentrators to distribute them whenever the need arises, Widyastuti revealed.

"We are always in contact (with them) when we encounter an obstacle related to the limited number of personnel. Our personnel are ready to help them reach hospitals," she remarked.

The Industry Ministry had earlier made assurance of sufficient stocks of domestic oxygen concentrators to handle the recent surge in COVID-19 cases in the country.

"In essence, there is no scarcity of oxygen concentrators, as their stocks are sufficient to meet the high demand arising from a surge in COVID-19 cases," Industry Ministry’s spokesman, Febri Hendri, noted in a written statement released on Thursday.

Jakarta registered the highest number of daily infections at 4,693 on Wednesday, followed by 2,910 in West Java, 2,595 in Central Java, 873 in East Java, 694 in Yogyakarta, and 330 in Riau.

The highest number of daily recoveries was recorded at 2,032 in Central Java, followed by 1,191 in Jakarta, 1,030 in West Java, 422 in East Java, 315 in Riau, and 279 in Riau Islands//ANT