Bank Indonesia to Share Debt Burden and Risk of Economic Recovery Programme with the Government

The Government of Indonesia and Bank Indonesia (BI) will share the burden and risks of finance rescue packages for businesses that are severely affected by the COVID-19 pandemic as part of the economic recovery programme, according to the Head of the Finance Ministry’s Fiscal Policy Agency, Febrio Kacaribu.

The Government of Indonesia released a regulation to support an economic recovery programme worth IDR 318.09 trillion (USD 21.28 billion), as evidenced in a document issued by the Finance Ministry. Under the Government Regulation (PP) No. 23/2020 that was issued on the 11th of May 2020, the Government will mainly focus on capital injections for state-owned enterprises, as well as loan subsidies for micro, small...