ER
MINISTER of Finance Sri Mulyani together with the Minister of Law and Human Rights as representatives of the government were present at the DPR to deliver President Jokowi’s Letter of Government and submit the Bill on Government Regulations in Lieu of Law (PERPPU) Decree No. 1 of 2020 concerning state finances and financial system stability, to be discussed by the DPR and stipulated into law.
PERPPU 01/2020 is a legal foundation in a precarious situation which is compelling in order to deal with the Covid threat 19.
The first part of PERPPU covers State Finance. Which includes increasing the upper limit of the state budget deficit above 3% of GDP for 2020-2022. The authority to reallocate the APBN and APBD budgets between units, functions and programs; Decreasing corporate tax rates; Digital sector taxation, and relaxation of time submitting tax administration obligations and the authority to exempt import duties.
The second part of PERPPU regulates financial sector stability that anticipates in the event of a threat to financial system stability – the Financial Sector Stability Committee (KSSK) can take preventative and apprenticeship measures of the financial crisis. Bank Indonesia can help systemic and non-systemic bank liquidity; Bank Indonesia (Central Bank) can buy state securities on the primary market in a very abnormal market situation; LPS can handle problem banks; OJK can do the relaxation and actions needed to keep financial institutions maintained.
In order not to be misused, the Government (KSSK) cooperates with the Public Prosecutor’s Office, National Police, and the Corruption Eradication Commission so that the potential moral hazard of misusing PERPPU can be avoided.
With PERPPU the task of maintaining public safety, the economy and financial stability is expected to be carried out on a strong legal basis and by applying the principles of good governance.
Meanwhile the Speaker of the DPR @puanmaharaniri conveyed that the DPR and the Government united to face the threat of Covid19 and hoped that the government’s handling measures could truly be felt by the community. The DPR along with the DPR’s equipment will immediately discuss PERPPU to be immediately determined at the Plenary Meeting. [sources/traveltext.id]
