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.
An amendment to the Bank Indonesia Law suddenly entered the priority list of discussions in the national legislation program (Prolegnas) in parliament.
House members questioned the protracted discussion of the "burden-sharing" between the government and the central bank.
Jakarta applied a phased easing on PSBB starting Friday, June 5, 2020. Governor Anies Baswedan called this easing a transitional period.
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 But with Perppu No. 1/2020, the regulation was revoked.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.
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?