The government put SOEs rescue among top priority amid the Covid-19 pandemic, planning to disburse a total of Rp 152.75 trillion in liquidity for 12 SOEs.
Weekly Insights Archive
Current account deficit conditions experienced by Indonesia still make the rupiah exchange rate vulnerable to turmoil.
To finance the program, the government will issue bonds to be purchased by Bank Indonesia. The Bank Indonesia Act actually prohibits BI from buying government bonds in the primary market. But with Perppu No. 1/2020, the regulation was revoked.
The Indonesian government plans to revoke partial lockdown - the so-called Large-Scale Social Restrictions (PSBB) - which are now in effect in several provinces and cities.
Despite the controversy and rejection against the revision bill on Mineral and Coal Law No. 4/2009, DPR and the government continued to carry out discussions.
Numerous state-owned enterprises are facing liquidity problems. The coronavirus pandemic, impacting all economic sectors, is inflicting the enterprises’ revenues.
Turmoil emerged in the State Palace amid the increasingly widespread economic-hit coronavirus pandemic. State Palace got into the center of attention as the public criticized the special staff of the president.
Indonesian companies and enterprises are struggling to keep their businesses to stay afloat since the Covid-19 spread does not seem to slow down.
The central government has not been optimally coordinating with the regional governments in handling the pandemic.
The government has already spent Rp 158 trillion worth of stimulus to mitigate the economic impact of the Covid-19 epidemic. Such an effort does not seem to have a desirable effect. Will it lead to massive layoffs?