GENERAL NEWS AND HEADLINES

COVID-19 task force to launch open data system to ensure transparency
Kompas (https://tinyurl.com/y83stac3); Detik  (https://tinyurl.com/y8pz2wau)

The national COVID-19 rapid response task force will launch a nationwide system that provides all COVID-19 related data, as confirmed by task force expert staff Wiku Adisasmito.

The data system, according to Wiku, will serve as the government’s navigator in establishing policies related to its COVID-19 response. The data system, which is to be called Bersatu Lawan COVID-19 (Unite Against COVID-19), will also be accessible for the public to ensure transparency.

Wiku explained that the data system would include information regarding the spread of the coronavirus and hoped that it would increase public awareness in tackling the COVID-19 pandemic.

 

Ministry authorizes regional govts to handle aid distribution
Kompas (https://tinyurl.com/y8bnrsp3); Liputan6 (https://tinyurl.com/yayhkx67)

Social Affairs Minister Juliari Batubara has authorized regional governments to resolve issues regarding the uneven distribution of social aid provided by the central government for low-income families that have been affected by the COVID-19 outbreak. Juliari acknowledged that uneven aid distribution could potentially occur in a number of regions.

The minister further stated that the mechanism for the list of aid recipients was subject to each regional administration.

 

Judicial review of pandemic response Perppu to be held face to face
Media Indonesia (https://tinyurl.com/y7gmg8k4)

The Constitutional Court is set to hold a judicial review of Regulation in Lieu of Law (Perppu) No. 1/2020 on state financial policy and financial system stability regarding the COVID-19 response on April. Amid the large-scale social restrictions (PSBB) policy imposed by the government, the hearing will still be conducted face-to-face.

Chief Justice Anwar Usman stated that the hearing would strictly follow the established health protocols.

The hearing will be broadcast through the Constitutional Court’s official YouTube channel.

 

BUSINESS AND ECONOMICS NEWS AND HEADLINES

Indonesia negotiates US$250m aid for COVID-19 mitigation from IDB
CNBC Indonesia, (https://tinyurl.com/yazen2fb); Liputan6, (https://tinyurl.com/ya35nhy2) 

Finance Minister Sri Mulyani Indrawati has announced an agreement with the Islamic Development Bank (IDB) to provide aid of up to US$250 million for COVID-19 mitigation in Indonesia. “The amount of COVID-19 emergency funding from the IDB is still under negotiation, expected within the range of $200 million to $250 million,” Sri Mulyani said. The aid from the IDB will come together with support from other multilateral organizations such as the World Bank and the Asia Infrastructure Investment Bank (AIIB), she added.

 

Corporate income tax rate reduction applies this month
Kontan, (https://tinyurl.com/y9oc9bn5); Detik, (https://tinyurl.com/ycj7jgaa); Liputan6, (https://tinyurl.com/y8zuhggk) 

The Directorate General of Tax (DGT) is using the new 22 percent corporate income tax rate – 19 percent for publicly listed companies – from April 2020. Tax office spokesman Hestu Yoga Saksama urged companies to fill their annual tax returns (SPT) before the Apr. 30 deadline while taking advantage of the relaxation in the tax documents completion process, as stipulated in DGT Regulation No. PER-06/PJ/2020, and to adjust the tax calculation using the new rate. Companies eligible for the new corporate income tax rate are expected to pay their tax by May 15 at the latest.

 

Commodities slide puts pressure on Indonesia
The Jakarta Post, (https://tinyurl.com/yd7wqcel) 

Global commodity prices are expected to tumble this year in a way unseen since the 1900s. The World Bank’s 2020 commodity outlook report projects a 40.3 percent decline in energy commodity prices from last year’s average. This is accompanied by drops in industrial metal prices (13.2 percent) and agricultural prices (1.1 percent).

This is bad news for major commodity-exporting countries like Indonesia. Statistics Indonesia (BPS) data show that Indonesia’s top two exports last year were coal and palm oil. The two commodities alone contributed a quarter of the country’s total export earnings of US$154.9 billion in 2019. Rubber and related products were Indonesia’s seventh largest export, contributing 3.89 percent to total output last year.

 

BPDs to revise business plans
Bisnis Indonesia, (https://tinyurl.com/ycubfk6v); Tempo, (https://tinyurl.com/yddxv4ze) 

Regional development banks (BPDs) are expected to revise their business plans because of the economic impact of the COVID-19 pandemic and the adjustment of the 2020 regional budgets (APBDs) in their respective regions to mitigate the pandemic. For instance, Yogyakarta Regional Development Bank (Bank BPD DIY) marketing director Raden Agus Turmijanto said 10 percent of the bank’s outstanding loans were affected by the COVID-19 pandemic, and the bank is considering debt restructuration to address this issue. South Sulawesi and West Sulawesi Regional Development Bank (Bank Sulselbar) acting president director Irmayanti Sultan said regional budget adjustments to mitigate the COVID-19 pandemic affected the bank’s credit growth target.

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