Big Picture of Jiwasraya’s Policy Rescue Amid Giant Deficit

Jiwasraya's policy rescue effort is entering a new phase. The SOE Ministry has designed a rescue scheme that includes the establishment of a new insurance company and a major policy restructuring, in addition to the state capital injection.

The Ambitious Program to Injects More Liquidity with QE

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 But with Perppu No. 1/2020, the regulation was revoked.

Stimulus: Does It Have Any Effect at All?

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?