Indonesia announced on Friday it will allocate 120 trillion rupiah ($8.1 billion) to stimulate the economy on the back of a coronavirus-related slowdown, media reported
MOSCOW (Pakistan Point News / Sputnik - 13th March, 2020) Indonesia announced on Friday it will allocate 120 trillion rupiah ($8.1 billion) to stimulate the economy on the back of a coronavirus-related slowdown, media reported.
According to Jakarta Post, tax incentives and subsidies for workers and businesses affected by the coronavirus pandemic will be covered from the Federal budget.
Finance Minister Sri Mulyani Indrawati announced that $1.5 billion worth of tax breaks will be granted to corporations, in addition to relaxation of loan restructuring requirements.
"This will not be the last announcement, as the developments have been extremely dynamic. We will assess the situation to mitigate and minimize the impacts. We cannot eradicate the impacts but we can minimize them for corporations and the public," Finance Minister Sri Mulyani Indrawati told a press briefing in Jakarta, as quoted by the newspaper.
Indonesia's Finance Ministry set a six-month window in which almost import taxes will be completely lifted for 19 manufacturing sectors, while corporate taxes will be cut by 30 percent.
As of Friday, Indonesia reported just over 30 cases of the coronavirus leading to one patient dying, according to the country's health ministry.
However, the economic impact has been far greater as the country, which is Southeast Asia's largest economy, sits at a critical pathway for seaborne trade between China and the West and trades extensively with all sides.
