Corona Impact Antidote Package Policy Released, Here Are The Following Details

JAKARTA. The government has officially announced a policy package to mitigate the economic impact of the Corona virus. This stimulus package consists of fiscal and non-fiscal policies.

Based on a written statement issued by the Coordinating Ministry for Economic Affairs (Kemenko Perekonomian) on Friday (13/3), there are four fiscal policies and four non-fiscal policies released by the government. These policies are expected to keep the real sector moving and maintain the purchasing power of the people.

On the fiscal side, stimulus issued by the government include the Income Tax Article(ITA/Pajak Penghasilan/PPh) 21  Borne by The Government (Ditanggung Pemerintah/DTP) 100%. This relaxation is provided for manufacturing workers who earn less than IDR 16 million per month.

In addition, the government will also release ITA 22 on import to companies engaged in certain sectors, Taxpayers (Wajib Pajak/WP) Import Facilities for Export Purposes (Kemudahan Impor untuk Tujuan Ekspor/KITE) and taxpayers Import Facility for Export Purposes - Small and Medium Enterprises (WP KITE-IKM).

While the latest tax facility is in the form of preliminary restitution leases on overpayment of Value Added Tax (VAT) to companies. This preliminary restitution will be given to exporters and non-exporters.

For exporters, the government will not limit the overpayment value of VAT that is allowed to make preliminary restitution. Whereas for non-exporters, the government raised the limit from a maximum of IDR 1 billion to a maximum of IDR 5 billion.

These four fiscal facilities will be provided for six months, which will be valid from April to September 2020.

Non Fiscal Stimulus

There are four non fiscal stimulus provided by the government. First, the government will simplify and reduce the number of prohibitions and restrictions (larangan dan pembatasan /lartas). Second, the government will also simplify and reduce Lartas for raw material import activities.

Third, the government will accelerate the export-import process for reputable traders. To that end, the government will implement auto response and auto approval for the Lartas export and import process and will delete surveyor reports on certain commodities.

Fourth, the government will also develop the National Logistic Ecosystem (NLE) platform,  a system that connects companies and the government. The purpose of this system is to simplify and link information and documents related to export-import activities at the port. (ASP/Ken)