VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

Indonesian workers were making personal protective equipment amid the COVID-19 outbreak. (Dok Humas PT Eigerindo Multi Pro)

The international rating agency Standard & Poor's (S&P) projects that Indonesia's economic growth will decrease to 1.8 percent this year due to the COVID-19 pandemic, before improving strongly in the next one or two years.

The government's decision to issue bold fiscal policy measures would help prevent long-term economic deterioration. Therefore, Indonesia's long-term economic growth rate was expected to remain well above the average peer country, according to the Bank Indonesia Communication Department in a written statement here on Sunday.

According to S&P, the superiority in terms of long-term economic performance indicates constructive economic dynamics in Indonesia.

On the external side, S&P considers that the rupiah exchange rate that depreciated sharply had a negative impact on the external sector and increased the cost of foreign debt so that it could affect the government's ability to pay its obligations.

Nevertheless, S&P believes that Indonesia can manage this risk considering that in recent years Indonesia has large and sustainable access to financial markets and foreign investment, even when the financial market situation is volatile.

S&P also believes that the flexibility of the rupiah exchange rate will benefit Indonesia's external competitiveness over the next few years and expand the space of the central bank in maintaining foreign exchange reserves.

S&P estimates that the rupiah exchange rate will gradually strengthen in line with the condition of global financial markets which will continue to be stable until the end of 2020.

On the fiscal side, an increase in the fiscal deficit will increase the amount of government debt in the next few years. However, the S&P understands that the increase in the deficit is the impact of extraordinary steps taken by the government in response to external shocks that are very unpredictable.

Strong fiscal support is needed to manage the public health crisis due to the widespread outbreak of COVID-19 and to mitigate its impact, both temporary and structural, on the Indonesian economy.

Specifically, the S&P highlighted the important role of Bank Indonesia in supporting efforts to maintain economic growth and mitigate economic and financial shocks.

A government regulation in lieu of law (Perppu) which was recently signed by President Joko Widodo, authorized Bank Indonesia to buy government securities on the primary market if market demand was deemed inadequate.

This can assist the government in managing loan costs when the financial markets are experiencing extreme disruption. Since the 2008 world financial crisis, many central banks in developed countries have also been given the same authority. Because this authority is only used when the financial market situation is under pressure, the impact on inflation and the exchange rate is relatively controlled.

In this regard, S&P acknowledged that with the independence support, Bank Indonesia was able to manage inflation at a level that was consistent with peer countries. (ANTARA)

Indonesian Medical Association (IDI) Chairman Daeng M. Faqih stressed on the criticality of support, from all elements of the nation in the fight against COVID-19, as the pandemic is expected to prolong.

"The COVID-19 pandemic is expected to last for an extended period of time. Hence, we need the support of many parties," Faqih noted in a statement in Jakarta on Saturday as quoted by Antara.

The IDI chairman pointed to the shortage of personal protection equipment (PPE), faced by medical workers while bureaucracy had hindered the distribution of the equipment, from the government to hospitals nationwide.

The IDI has received a report that cited the difficulties faced by private hospitals in obtaining PPE, as most of them were distributed to the government's referral hospitals.

To this end, the association has commended the efforts made by various parties to help medical workers in handling the outbreak.(Antara).

The government exempted import duties and import taxes on goods for COVID-19 response to all parties, including the central government, regional governments, individuals, legal entities, and non-legal entities. "With customs and tax facilities, this is very helpful in providing goods for domestic needs," Director General of Customs and Excise Heru Pambudi said in a press statement here on Sunday. This facility was stipulated in Minister of Finance Regulation number 34 / PMK.04 / 2020 concerning Provision of Customs and Excise and Taxation Facilities on Imports of Goods Needed for COVID-19 Response. The new regulation was born in accordance with Article 9 and Article 10 of a government regulation in lieu of law (Perppu) 1 of 2020 which gave the minister of finance the authority to provide customs facilities for the import of goods needed in handling the pandemic of the SARS-CoV-2 virus. The regulation, which was issued April 17, 2020, is an extension of the previous regulation for the provision of fiscal facilities based on Minister of Finance Regulation (PMK) 70 in 2012 and PMK 171 in 2019. However, he continued, the two schemes were still unable to solve problems in the field. With this latest regulation, imports of goods for handling COVID-19 such as imports of goods by the private sector that are used alone or imports of goods through individuals (shipment) and passenger luggage, are now facilitated. The facilities provided are exemption from import duty and / or excise, are not subject to Value Added Tax (VAT) and Sales Tax on Luxury Goods (PPnBM). In addition, the exemption from collecting income tax (PPh) article 22 on the import of goods for the purpose of handling COVID-19 both for commercial and non-commercial purposes. Heru added that in this latest PMK there were 73 types of goods that were provided facilities in the customs and taxation facilities. As for imported goods that are provided with facilities, namely shipments originating from abroad, goods through bonded logistics centers (PLB), or goods released from bonded zones / bonded warehouses. Then, the free zone or special economic zone, and companies receiving export-import facilities (KITE). To get this convenience, submissions are made electronically through the Indonesia National Single Window (INSW) portal or submitted in writing to the Head of the Customs Office where the goods are imported. The submission is excluded for importing shipments and luggage of passengers whose value does not exceed the cost of the goods only on board or does not include ship costs (free on board / FOB) 500 US dollars, so there is no need to submit an application. The application, he said, was enough to be completed with the shipping document or consignment note (CN) for the shipment or Customs Declaration for passengers' luggage from abroad. Even so, for shipment items, the facility is provided after the Postal Operator or recipient of the goods submits the Taxpayer Identification Number (NPWP) in the consignment note. Whereas if the value of the shipment or passenger luggage value exceeds 500 US dollars Free on Board (FOB), the exemption facility can still be provided as long as the application has been submitted and approved by the Minister of Finance through the Head of the Customs Office. The import documents used for shipments or passenger luggage that exceed 500 US dollars Free on Board (FOB), he said, use the Notification of Imported Special Goods (PIBK). If the type of imported goods provided by the facility is subject to the provisions of the import trade system, Heru continued, for convenience it is sufficient to attach a letter of recommendation for import trade exemptions from the National Disaster Mitigation Agency (BNPB) at the time of import or release of goods. However, if the imported goods do not exceed the amount stipulated by the trade system or the relevant ministry or agency and / or BNPB, there is no need to attach a recommendation letter on the exclusion of the import trade system from BNPB. Heru explained that the term of the facility is valid until the end of the COVID-19 pandemic handling period that is set by the BNPB.(ANTARA)

Deputy Chairperson of the People's Consultative Assembly (MPR) Lestari Moerdijat has urged the government, to give serious consideration to the recent spike in dengue hemorrhagic fever (DHF) cases in Indonesia, which now exceed 41 thousand. She said in a statement  on Friday as quoted by Antara that she understands, that the government is currently facing complex and severe health issues, particularly the COVID-19 outbreak.

But, the trend of increasing number of dengue cases should not be ignored. Based on data provided by the Ministry of Health, the number of dengue cases has reached 41,883 as of April 14, 2020, which is much higher than last year, when the country recorded 40,425 cases. Lestari Moerdijat has called for vigilance as the death toll due to DHF has also been quite high. As of April 14, 2020, Indonesia has recorded 266 deaths compared to 354 last year//Ant