The government issued a Presidential Regulation on positive investment list, offering incentives to priority sectors.
Bank Indonesia (BI) decided to cut the BI 7-day reverse repo rate (BI7DRR) by 25 basis points to 3.5 percent while urging banks to adjust lending rates immediately and spur economic recovery.
The Governments of Indonesia and Hungary created an investment fund for infrastructure projects. The initial investment value from each country reaches US$500 million.
Around 27.55 people lived below the poverty lines, equivalent to 10.19 percent of the total population as of September 2020, as the COVID-19 pandemic took its toll on the poor. The government needs to allocate larger budgets for social assistance.
Indonesia's COVID-19 tracers are only 6.17 percent of the ideal workforce. Thus tracing patients and people who have contacts with patients are increasingly difficult.
Indonesia's economic growth in 2020 will be minus 2.07 percent, meaning that the Gross Domestic Product per capita will be around US$3,911.7. Therefore, Indonesia will no longer be an upper-middle-income country.
The Ministry of Energy and Mineral Resources set the February 2021 Reference Coal Price (HBA) at US$87.79 per ton, 15.7 percent higher from the January HBA of US$75.84 per ton, following commodity supercycle sentiment.
Tax revenue is still facing tough challenges this year, especially corporate taxes. The COVID-19 pandemic has suppressed business performance, so it takes time to recover tax revenue from this sector.
Indonesia's 2020 corruption perceptions index (CPI) decreased following various issues, as global investors doubted the government's commitment to eradicating corruption.
The Trade Minister plans to grant a fiscal incentive for the trade sector. However, it may shrink the state revenue and trigger WTO bans.