New Regulations to Support National Economic Recovery

Summary

The government has revised regulations on the National Economic Recovery (PEN) program implementation to support state financial policies for handling COVID-19. Regulations that were previously contained in Government Regulation (PP) No. 23/2020 are now revised into Regulation No. 43/2020, which came into force on August 4, 2020.

Finance Minister's Special Staff for Strategic Communication Yustinus Prastowo revealed several points in the regulation that were revised. "Some points are related to funds placement in banks, some are related to regional PEN, (the regulation) determines loan scheme as well," Yustinus said, Thursday (8/6).

Article 10 of the regulation states that the government can place funds in partner commercial banks using the state money management mechanism in PEN implementation. Commercial banks to partner with the government must have a valid business license as a commercial bank, have business activities in Indonesia, and the state, local government, legal entities, and Indonesian citizens must be the local shareholders. Besides, partner commercial banks must have a minimum composite health level 3, which has been diversified by the Financial Services Authority (OJK) and carry out banking business activities that support the national economic recovery acceleration.

Start your free trial.

If you would like to get a 30-day free unlimited access to all of our insights, please click “Start free trial” button below. If you already have an account, please login.

What do subscribers receive?

As a subscriber, you’ll receive daily insights, weekly business digests, and bimonthly industrial reports.

What kind of pieces will i get?

In-depth reports on assumption and impact analysis, as well as update and trends mapping, written by our credible and experienced analysts.

And, there is something else…

Enjoy a 30-day free trial, on us. Feel free to contact us with any additional questions you have.