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Another stimulus package prepared for manufacturing industry as coronavirus spreads
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Hospital staff and Visitors wears mask at Sulianti Saroso Infection Hospital (RSPI Sulianti Suroso) isolation building in Jakarta on Monday, March 2, 2020. (JP/Seto Wardhana)
T
he government will soon launch another stimulus package to ensure a smooth supply of raw materials for the country’s manufacturing sector amid the widespread impacts of the coronavirus on the global market.
Finance Minister Sri Mulyani Indrawati said in Jakarta on Monday that the government would ease import requirements of raw materials for the country’s manufacturers as the disruption of the supply chain from China due to COVID-19 had begun to affect the country’s manufacturing sector.
The outbreak, which emerged in the Chinese city of Wuhan, prompted the Chinese government to limit economic and factory activities in the country, resulting in a disrupted flow of goods to other parts of the world, including Indonesia.
“About 20 percent to 30 percent of the raw materials for the country’s industries engaged in plastic, textile and steel production are sourced from China. For some other industries, the raw materials from China could reach 50 percent,” Sri Mulyani told the press at the Presidential Palace in Jakarta.
Read also: Indonesia's manufacturing industry expansive despite virus spread
To prevent a further slowdown in the manufacturing industry, the secretary to the coordinating economic minister, Susiwijono Moegiarso, said in Jakarta on Tuesday that the new stimulus package would ease procedures to import raw materials from countries outside China and procedures to export wood-related products.
He said the measures would also include the relaxation of trade restrictions and regulations, such as the timber legality assurance system license for wood products, health certificate and certificate of origin for exporters.
