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Indonesia to launch second, ‘bigger’ stimulus to cushion virus impact
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The loading and unloading facilities at the Jakarta International Container Terminal (JICT), Tanjung Priok, North Jakarta. (Antara/Dhemas Reviyanto)
T
he government is working to finalize eight measures that will be incorporated in a second stimulus package aimed at easing rules for exports and imports as supply chains continue to be disrupted by the spread of coronavirus.
Coordinating Economic Minister Airlangga Hartarto said in Jakarta on Wednesday that the stimulus would be “bigger” than the first one.
“Trade easing will be expanded to keep the momentum of boosting exports,” Airlangga said in Jakarta. “We are also working to relax the income tax and import duty to boost production.”
The measure follows the unveiling of a Rp 10.3 trillion (US$725 million) stimulus package last week to support consumer spending and tourism.
Airlangga said the second stimulus package would be worth more than Rp 10 trillion, adding that the government would announce the new stimulus package soon to help support trade. “Several export-import licenses will be removed given the current circumstances.”
Read also: Indonesia finalizes second stimulus package to support trade amid virus fears
“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,” Finance Minister Sri Mulyani Indrawati said on Monday told the press at the Presidential Palace in Jakarta.
