2023 Lookback: Indonesia's 10 Most Impactful Economic Policies
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December 30, 2023 | 01:00 pm
TEMPO.CO, Jakarta - Throughout 2023, the government issued a number of economic policies. From the El Nino BLT policy, and distribution of free rice cookers, to providing incentives in the property sector, some policies are more impactful than others.
The following is Tempo's version of Indonesia's 10 most impactful economic and business policies.
1. The BLT El Nino
The Finance Ministry allocated Rp7.52 trillion for El Nino Direct Cash Assistance (BLT), to help people's purchasing power amidst rising prices caused by climate change, especially the heat wave which caused rice production to decline and prices to rise. A total of 18.8 million beneficiary families (KPM) recorded at the Ministry of Social Affairs were given Rp400,000 each.
2. Bulog rice assistance
Implemented since March 2023, the Bulog rice assistance program provides 10 kilograms of rice per month to eligible families. The program aims at reducing the inflation rate, reducing price volatility, addressing food scarcity and poverty, among others. President Joko Widodo said the program will run until March 2024.
3. 8% Wage Hike for civil servants and government employees (ASN)
President Jokowi proposed raising the salaries of civil servants (PNS) by 8% in 2024. The wage hike is also applied to members of the Indonesian Military (TNI), members of the Indonesian National Police, and retirees.
4. Electric Vehicles Incentives
The government provides incentives for electric vehicles by exempting Rp7 million of the luxury goods sales tax (PPnBM) for each purchase of electric motorbikes. The government also relaxed the incentive requirements for purchasing electric motorbikes. On December 8, 2023, Jokowi issued a Presidential Regulation that relaxes the rule on the domestic component level (TKDN) and incentivizes the import of electric vehicles.
5. Banning e-commerce from joining social media
Trade Minister's Regulation No.31/2023 was issued to increase protection for MSMEs, consumers, and domestic entrepreneurs. The rule prohibits social media platforms from conducting e-commerce activities. It also prohibits the sale of imported goods on the marketplace with a minimum price of US$100 per unit.
