The Government Injects More Liquidity Into the Economy
The Indonesian government will again release a large stimulus to counter the economic impact of the pandemic coronavirus disease (Covid-19). On Monday (5/11), the government issued Government Regulation No. 23/2020 on Implementation of the National Economic Recovery Program, which is the legal basis for disbursement of these incentives.
The PP regulates that in order to restore the national economy, the government will have the flexibility to take four steps to intervene: carry out State Capital Participation (PMN), placement of funds, government investment, and guarantees. Funding for this program is carried out by issuing Government Securities (SBN), which will be purchased by Bank Indonesia (BI) in stages.