Indonesia News Gazette

Jakarta (ANTARA) – Indonesian Vice President Ma’ruf Amin has said the government is mulling the possibility of expanding the budget for the National Economic Recovery (PEN) program.

“The government is mulling the possibility of increasing the budget for the PEN program,” Amin said while giving a public lecture on the LXII Regular Education Program (PPRA) and the XXIII Short Education Program (PPSA) of the National Resilience Institute (Lemhanas) for this year.

The additional budget for the economic recovery program is aimed at maintaining people’s purchasing power, boosting the economy, and addressing health issues, Amin said in a lecture that he delivered online from his official residence here on Tuesday.

“(The addition) is to maintain purchasing power, encourage the economy, and deal with public health. All these expenditures have not been budgeted in the ongoing State Revenue and Expenditure Budget (APBN), and it is possible that the addition will be obtained through refocusing or reallocating government spending,” he added.

In line with efforts to increase the budget for national economic recovery, the Vice President said, the government will also continue to provide social protection assistance, pursue employment programs, and provide support to micro, small, and medium enterprises (MSMEs).

“The social protection programs include the Family Hope Program (PKH), the Non-Cash Food Assistance Program (BPNT) or Basic Food Program, then Cash Social Assistance Program and Direct Cash Assistance (BLT) of the Village Fund Program, which have continued to be improved, while the schedule and targets are synchronized,” he elaborated. Job training or vocational education will also continue to be provided by the government through the Pre-Employment Card Program and the Intensive Work Program to reduce unemployment in the wake of the COVID-19 pandemic, Amin said.

“In addition, infrastructure development in the village will also be improved and directed to empower local workers and local products. Then, the program of providing assistance for micro enterprises and credit for micro, small and medium enterprises (MSMEs) will also be continued,” he said.

Earlier, Coordinating Minister for Economic Affairs, Airlangga Hartarto, said the proposed additional budget for the recovery of the national economy is 225.4 trillion Indonesian rupiahs.

The addition has been proposed in the wake of emergency restrictions on community activities (PPKM) on the islands of Java and Bali, he said.

Out of the additional budget, Rp120.72 trillion is proposed to be allocated for health programs, Rp10.89 trillion for priority programs, Rp28.7 trillion for social protection, Rp15.1 trillion for business incentives, and Rp50.04 trillion for supporting MSMEs, he said.

Source: Antara News

Timika, Papua (ANTARA) – Commander of the XVII/Cenderawasih Regional Military Command, Maj.Gen. Ignatius Yogo Triyono, visited Timika, Papua Province on Tuesday to review the construction of facilities for the 2021 National Games (PON) and National Para Games (Peparnas).

Shortly after arriving at the capital of Mimika District, Triyono and his entourage headed to the 3/SC Cavalry Detachment headquarters to review the progress of construction of two accommodation facilities for volleyball athletes and officials from participating provinces.

Triyono also reviewed the construction of the athletes village and other supporting facilities to ensure that they all would be completed as targeted, operations assistant at the XVII/Cenderawasih Regional Military Command, Col.Surya Wibawa Suparman, said.

The National Games (PON) will be held in Jayapura City and the districts of Jayapura, Merauke, and Mimika from October 2 – October 15, 2021.

Selected athletes and officials from across Indonesian provinces are scheduled to participate in the national sporting event, which will cover 37 sporting disciplines, including athletics, Tarung derajat or West Javan martial arts, handball, sport climbing, futsal, aeromodelling, and judo.

Regarding the convening of the PON, the top brass of the National Police have highlighted that the security situation in Papua remains conducive ahead of the country’s largest multi-sport event.

“The National Games will be held as scheduled,” National Police spokesperson Brig. Gen. Rusdi Hartono stated last April.

The Indonesian Defence Forces (TNI) and National Police are readying a security plan to ensure the Papua PON National Games are scheduled as held, he said.

Armed Papuan groups have continued to disrupt law and security in several areas, but the police and army personnel are ably handling their acts of violence, Hartono noted.

Security personnel stationed in Papua, including those from the Nemangkawi Task Force, are striving to maintain security to ensure that conditions in the province remain conducive, he remarked.

Over the past few years, armed Papuan groups have used hit-and-run tactics against Indonesian security personnel and unleashed acts of terror against civilians in the districts of Intan Jaya, Nduga, and Puncak to create fear among the people.

The recent targets of their violence have included construction workers, motorcycle taxi (ojek) drivers, teachers, students, street food vendors, and even civilian aircraft.

Source: Antara News

Jakarta (ANTARA) – The government intends to again raise the health budget to Rp193 trillion, from Rp182 trillion, in a bid to cater to the needs to handle the COVID-19 pandemic, Finance Minister Sri Mulyani Indrawati stated.

Health budget in the National Economic Recovery (PEN) and COVID-19 Handling programs was initially pegged at Rp172 trillion and was thereafter increased to Rp182 trillion, Indrawati noted during a press conference after attending a plenary cabinet meeting here on Monday.

However, the surge in COVID-19 cases had compelled the government to enforce emergency public activity restrictions (PPKM) owing to which the health budget had climbed to Rp193 trillion.

“For the health sector in 2021, increases are planned for PEN and COVID-19 handling programs. We have taken the decision to increase the health ceiling budget to Rp193 trillion,” the minister stated. It is deemed necessary to increase the health budget to finance diagnostic handlings, such as testing, tracing, and treating COVID-19 patients that currently reached 236,340.

“Several movements and changes have occurred, in particular, pertaining to the rising COVID-19 cases and then the emergency PPKM enforcement, thereby necessitating the state budget to support programs in the health and social protection sectors,” Indrawati stressed.

In addition, the budget was utilized for incentives disbursed to health workers, compensation in the event of death, health equipment spending, personal protective equipment (APB), and medicines.

The minister noted that the increase in health budget will also be utilized for financing the procurement of COVID-19 vaccines.

“The budget, reaching as much as Rp193 trillion, will be utilized for the procurement of 53.9 million doses of vaccine and for the national health insurance (JKN) for 19.15 million citizens,” Indrawati remarked.

Source: Antara News

Jakarta (ANTARA) – At least 46 partner countries will help Indonesia collect taxes from taxpayers abroad once the bill on the amendment to the law on general provisions and taxation procedures is passed into law.

Director general of taxation at the Finance Ministry, Suryo Utomo, made the remarks at a meeting of the working committee of Commission XI of the House of Representatives (DPR) in Jakarta on Monday.

“Right now, we have signed 13 avoidance of double taxation agreements (with other countries). So we can collect taxes from the authorities of other countries and the other way around,” he said.

Indonesia has signed avoidance of double taxation agreements with Algeria, the United States, Armenia, the Netherlands, Belfia, the Philippines, India, Laos, Egypt, Suriname, Jordan, Venezuela, and Vietnam.

Utomo said 141 countries have also signed the Mutual Administrative Assistance Convention in Tax Matter ( MAC), while 46 partner countries have agreed to assist each other in collecting taxes.

However, the rules cannot be implemented in the absence of a legal basis, he added.

Hence, through the amendment to the general provisions and taxation procedure law, the Indonesian government will include clauses in the agreements with other countries related to assistance in tax collection on a reciprocal basis, Utomo elaborated.

“Admittedly, the general provisions and taxation procedures law makes no mention of (any) clause allowing us (to collect taxes on a reciprocal basis). Because of the limitation, we have tried to propose (an amendment to) it,” he said.

He proposed the inclusion of new Article 20A in the bill, which will give the Directorate General of Taxation the authority to seek assistance from partner countries in collecting taxes.

The directorate general will also be able to ask partner countries to collect taxes on a reciprocal basis by enforcing a distress warrant, in accordance with the tax collection law, he said. (INE)

Source: Antara News

Jakarta (ANTARA) – Indonesia’s economic growth is likely to dip below 4 percent in the third quarter in the wake of the emergency restrictions in Java and Bali, Center of Reform on Economics (CORE) economist Yusuf Rendy has forecast.

“Third-quarter growth will most likely be far below second-quarter growth. We predict the economy will grow 4 percent in the second quarter. The growth will be lower in the third quarter,” he said here on Monday.

The emergency public activity restrictions (PPKM) will no doubt restrict public activity and consumption, which will later have an impact on the national economic performance, he observed.

“Public consumption constitutes the biggest component of the GDP (national gross domestic product). So, when it is restricted, it will more or less affect economic performance,” he elaborated. Low economic performance will also result from the higher number of COVID-19 cases in provinces which contribute significantly to national economic growth, such as Jakarta, West Java, and Central Java, he said.

“Since the economy of the provinces will be disrupted, I think the national economy will be affected accordingly,” he predicted.

Investment will also be affected by the enforcement of the emergency PPKM, he added.

Low public consumption in provinces with a higher number of COVID-19 cases will prompt companies to reduce their production capacity, he pointed out.

“That is what the government must anticipate, including preparing social assistance and other assistance that will at least alleviate the burden of the community during the emergency PPKM,” he advised. The government has estimated 3.1-3.3 percent year-on-year economic growth for the first half of 2021, based on a projected return of the economic growth rate to 7 percent in the second quarter after remaining in the negative territory over the last four quarters.

During a press conference after a plenary cabinet session in Jakarta, Monday, Finance Minister Sri Mulyani Indrawati highlighted that the government still expects the gross domestic product growth in the second quarter to reach 7 percent year on year as the impact of the emergency PPKM will likely be felt in the third and fourth quarters of this year.

“In the first quarter, economic growth was recorded at minus 0.7 percent. In the second quarter, we estimate economic growth at 7 percent; so realization in the first semester of 2021 is at 3.1-3.3 percent,” she noted.

Indrawati said she believes that the impact of emergency PPKM will be felt in the third and fourth quarters of this year.

If the government’s target to reduce the COVID-19 transmission rate is effectively realized, then community activities can likely recover by August, 2021 owing to relaxation of restrictions on community mobility, she said. If that occurs, economic growth in the third quarter of 2021 could exceed 4 percent, she predicted.

“However, if the extended restrictions due to COVID-19 are high, then the third-quarter economic growth could decrease by around 4 percent. This is something to watch out for,” the former World Bank executive director cautioned. (INE)

Source: Antara News

Jakarta (ANTARA) – Coordinating Minister for Economic Affairs, Airlangga Hartarto, has revised Indonesia’s third-quarter economic growth forecast downwards to a range of 3.7-4 percent following the imposition of emergency restrictions in Java and Bali.

“Third-quarter (growth) will contract, but it will remain positive, possibly in a range of 3.07-4 percent,” he said at an online press conference on Monday.

Provinces in Java and Bali contribute 60 percent to the national gross domestic product (GDP), the minister noted. Therefore, the enforcement of emergency public activity restrictions (PPKM) will affect third-quarter economic growth, he stated.

Exports will be the main driver of the country’s third-quarter growth on account of high demand for crude palm oil, coal, rubber, and aluminum, Hartarto predicted.

Meanwhile, Center of Reform on Economics (CORE) economist Yusuf Rendy has forecast that Indonesia’s economic growth will likely dip below 4 percent in the third quarter in the wake of the emergency restrictions in Java and Bali. “Third-quarter growth will most likely be far below second-quarter growth. We predict the economy will grow 4 percent in the second quarter. The growth will be lower in the third quarter,” he said here on Monday.

The emergency public activity restrictions (PPKM) will no doubt restrict public activity and consumption, which will later have an impact on the national economic performance, he observed.

“Public consumption constitutes the biggest component of the GDP (national gross domestic product). So, when it is restricted, it will more or less affect economic performance,” he elaborated. (INE)

Source: Antara News

Jakarta (ANTARA) – Indonesia’s Vice President Ma’ruf Amin is upbeat that the sharia (Islamic) economic and finance could be a driving force of the national economic growth, especially attributed to human resources potential.

“As a Muslim majority nation, it is appropriate that the sharia economic and finance become the driving force of the national economy. Indonesia has a great potential in its development,” Ami said in his keynote speech at an online seminar entitled “Awaiting the Awakening of the Sharia Economic” here on Sunday.

For supply, Indonesia has various resources as capital for the sharia economic development.

The Vice President also said that Indonesia is a potential market in the sharia economic and finance field.

“We are a potential market for the sharia economic, including in the sectors of finance, halal food and products, Muslim fashion, Islamic social funds, sharia business, and so on,” he remarked.

By optimizing those various resources and capabilities, Indonesia can achieve the target of becoming the largest halal producer in the world as a number of non-Muslim countries have also penetrated the sharia market.

“We have to admit that we are still lagging behind in this regard, not only from Muslim majority countries, but also from non-Muslim countries such as Thailand and Brazil in exporting halal products, as well as the UK which is more advanced in developing Islamic finance,” he noted.

Therefore, four focuses of the Islamic economic and financial development that are currently being carried out by the Government must be able to accelerate the role and contribution of the Islamic economic in the national economy, according to him.

The four focuses are the development of the halal product industry, the development of the sharia finance industry, the development of sharia social funds and the development and expansion of sharia business activities.

Source: Antara News

Jakarta (ANTARA) – Indonesian National Development Planning Minister Suharso Monoarfa pressed for deepening cooperation between Indonesia and France to create a low-carbon environment, green and blue economy, as well as cooperation in financing the development of government projects.

Monoarfa, concurrently the National Development Planning Agency (Bappenas) head, made the statement while receiving senior officials from The Agence Française de Développement (AFD) and senior officials from the Ministry of Economy and Finance (French Treasury) at the Indonesian Embassy in Paris, France.

“The Ministry of National Development Planning/Bappenas has prepared an economic transformation strategy. The AFD collaboration with the ministry is an effort to implement Indonesia’s economic transformation strategy, particularly to create a green economy,” Minister Monoarfa noted in his official statement here on Saturday.

During the meeting, the minister affirmed that both parties had concurred on intensifying cooperation in realizing a low-carbon environment or green economy, with the focus on energy transition, waste management, and green industry, including green tourism. Waste-to-energy projects are some potential projects that can be developed. Meanwhile, the AFD will also fully support Indonesia’s steps in implementing the pilot project that plans to transform Bali into a blue island.

“The Ministry of National Development Planning/Bappenas will facilitate potential projects that can be financed with AFD loans, such as the eco-fishing port and mass transit program, particularly in Bandung and Medan,” the minister noted.

On the occasion, the AFD stated that through closer cooperation with Indonesia, coupled with other cooperation projects and in order to boost operational flexibility, operations of the AFD representative office in Indonesia in future will operate as a separate institution from the French Embassy in the country.

Meanwhile, the French Treasury also stated that in recent years, the French Treasury loans were distributed to finance the construction of television transmitters and the Meteorological System in Indonesia.

Meanwhile, the Indonesian government is also still considering funds from the French government for several government projects on account of the cooperation between both nations in financing development through the French Treasury financing facility that has existed since long.

“Several Indonesian government projects that can be potentially financed by the French Treasury are the National Data Center and the digitalization of broadcasting system. The National Data Center project will be implemented in the near future,” Minister Monoarfa stated.

The minister pushed for more competitive financing from the French government for its Indonesian counterpart’s projects as compared to other sources of financing. He is also sanguine that the French government would help with technical readiness and capacity building for recipients.

In the meantime, the French government has positively welcomed the cooperation plan, especially pertaining to the use of French Information and Communication Technology, such as satellites and radar. The French government also offers technical assistance in the preparation of the project using technology from the country.

Regarding the financing scheme, the French Treasury will negotiate with the banking syndicate, so that the financing can be implemented more competitively.

Source: Antara News