Fiscal Policy Initiatives to Provide Some Relief from COVID-19 Impact in Indonesia

Following advice from the International Monetary Fund (IMF), the Indonesian Government has decided to implement a variety of fiscal strategies to help contain the economic impact of COVID-19.

Coordinating Economic Minister (CEC), Airlangga Hartarto, announced that the fiscal stimulus package expected to be implemented in April 2020 will see the government delaying import duties and corporate income taxes for up to six months, in efforts to stimulate the country’s manufacturing sector.

The impact of the virus has created a disruption in the supply of raw materials to factories across the country. According to the CEC, up to 50% of raw materials required for the country’s...