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Indonesian Investment Promotion Centre (IIPC) Newsletter
The Indonesia Investment Promotion Centre (IIPC) has published its March newsletter with updates on Indonesia's investment climate and what's happening at IIPC Sydney.
Read the newsletter here.
Indonesia announces Rp 405 trillion COVID-19 budget, anticipates 5% deficit in historic move
Marchio Irfan Gorbiano and Adrian Wail Akhlas
The Jakarta Post
Indonesia will issue a government regulation in lieu of law (Perppu) that will boost state spending by up to Rp 405.1 trillion (US$24.6 billion) and widen the budget deficit to 5.07 percent of GDP in the nation’s fight against COVID-19.
President Joko “Jokowi” Widodo said Tuesday the Perppu would serve as a foundation for the government and banking and financial authorities to carry out “extraordinary measures to ensure the people’s health, safeguard the national economy and financial system stability”.
Of the extra spending, the government will allocate Rp 75 trillion for healthcare spending, Rp 110 trillion for social protection and Rp 70.1 trillion for tax incentives and credit for enterprises. The biggest chunk, Rp 150 trillion, will be set aside for economic recovery programs including credit restructuring and financing for small and medium businesses.
“I have just signed a Perppu on state finance policy and financial system stability,” Jokowi said in a telebriefing. “We will issue the Perppu to anticipate the possibility of a state budget deficit that is estimated to reach 5.07 percent.”
To continue reading the full article, please click here.
Financing Indonesian Businesses and Projects
In his recent article, Bill Sullivan of Christian Teo & Partners, looks at recent decisions affecting the financing of businesses and projects in Indonesia.
" A recent decision of Indonesia’s Constitutional Court has created a potential new challenge to financing local businesses and projects, including those in the mining industry.
This new challenge is in the form of increased uncertainty about the practical enforceability of a traditionally favoured security right of lenders, being the Fiducia Charge.
Increased uncertainty about the practical enforceability of the Fiducia Charge is also singularly unhelpful for the Government as it seeks to improve the ease of doing business in Indonesia and thereby attract more foreign investment.”
To read this article in full, click here.
Omnibus Bill and Changes Ahead for the Mining and Other Sectors
In another recent article, Bill Sullivan of Christian Teo & Partners, looks at the proposed Omnibus Bill on Job creation and its effects on Mining and other secotors.
" The Omnibus Bill on Job Creation proposes major changes to the existing regulatory regime for the Indonesian mining industry as well as to the existing regulatory regimes for numerous other industry sectors.
The future, however, of the Omnibus Bill is very uncertain owing to its complexity and the numerous objections that have been raised to different aspects of the same.”
To read this article in full, click here.
Indonesia Market Update
In their February 2020 edition of “Indonesia Market Update”, Morelink Asia Pacific provide news updates across many key sectors including the Indonesian economy, investment, trade, retail, agrifood, manufacturing, automotive, ICT and infrastructure sectors.
To read this update, click here.
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