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Govt to launch four economic structural reform policies
Coordinating Economic Minister Sofyan Djalil has said the government will soon release four new regulations in the first of a series of economic structural reform policy packages
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oordinating Economic Minister Sofyan Djalil has said the government will soon release four new regulations in the first of a series of economic structural reform policy packages.
'There will be four main regulations and they will have implementing regulations,' the minister said as quoted by Antara in Jakarta on Monday.
He was speaking after a final coordination meeting on the finalization of the economic structural reform policy packages at the Office of the Coordinating Economic Minister.
Sofyan added that the four regulations, which President Joko 'Jokowi' Widodo will announce soon, were a combination of revisions to older regulations and the introduction of new ones. He added that they concerned tax incentives, visa exemptions, biofuel uses, anti-dumping import duties and reinsurance operations for state-owned enterprises.
'The new regulations are all ready. Some of them will take effect on April 1, but there is also a government regulation (PP) that will take effect 30 days after its signing,' he said.
Sofyan declined to give details on the content of the revised and new regulations, saying that he must first discuss them with the President in a limited Cabinet meeting at the Presidential Palace.
Earlier, the government said the economic policy package was aimed at improving the performance of Indonesia's trade balance and services trade balance, which had become dominant contributors to the country's current account deficit.
It has been said that the current account deficit -- which continues to widen -- is an internal problem the government must deal with because of its negative impacts on the rupiah exchange rate. With a better controlled deficit, Indonesia's economic fundamentals can be better insulated from global economic pressures.
The government's new anti-dumping import duty policy aims to increase domestic competitiveness. Meanwhile, the revision of PP No 52/2011 on tax allowance and tax holiday is aimed at pushing foreign and domestic direct investments.
In its new regulation, the government sets a minimum biofuel use target higher than the current level of 10 percent. Meanwhile, visa exemptions will be provided for tourists from 25 countries. The government's new regulation on reinsurance operations of state owned enterprises aims to reduce the deficit in the services trade balance, especially in the insurance sector. (ebf)(+++)
