Kadin Hopes for Relaxed Policy to Mitigate Coronavirus Effect

TEMPO.CO, Jakarta - Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) Rosan Perkasa Roeslani, hoped that the government will loosen the policies related to import and export. The more relaxed policy is considered to be very necessary to stimulate the economy amid the negative impact of Coronavirus. 

"Indeed, we have discussed fiscal policy, monetary, omnibus law as structural reforms, but other matters concerning export and import are being discussed," Rosan said at the Four Season Hotel, Jakarta on Thursday, March 5, 2020.

Until now, Rosan has not received a report from industry players regarding difficulties to obtain raw materials due to Coronavirus outbreak. However, he said the reduction in production was very likely to occur because demand began to decrease.

On another occasion, Coordinating Minister for the Economy Airlangga Hartarto said that the second volume of the economic stimulus package was expected to be able to encourage the real sector in the midst of increasing economic pressure due to the Coronavirus. "The government will issue a second package related to the ease of import and export," he said.

Efforts to improve the real sector, said Airlangga, is also carried out by monitoring the situation of credit and funds entering the banking sector. The stimulus expected to move the economy together with the first incentives package previously announced.

"We have listened to input from Banking Stakeholders and CEOs and conveyed the government's priorities with the first stimulus package and then the policies are taken by BI and OJK, hoping that the BI rate cuts could be felt by the public," Airlangga said.

Previously, Airlangga said that the upcoming stimulus will help medium-scale companies. While the stimulus package announced at the end of last month was more targeted at micro and small-scale companies. Also, this stimulus package will regulate the matter of expediting the process for export and lowering import duties for various products.

Meanwhile, Finance Minister Sri Mulyani Indrawati said the government is still formulating the second stimulus package. "That is indeed what we are formulating, what is the [incentive] type, the targeted sector, the mechanism, those are the issues being formulated," Sri Mulyani said.

CAESAR AKBAR | GALUH KURNIA RAMADHANI (INTERN TRANSLATOR)