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Indonesia Earmarks Rp451 Trillion for National Economic Recovery Program in 2022

Wahyu Dwi Anggoro - 17 January 2022 12:11 WIB
Indonesia Earmarks Rp451 Trillion for National Economic Recovery Program in 2022
Coordinating Minister for Economic Affairs Airlangga Hartarto (Photo: Setpres)
Jakarta: The Indonesian Government has announced that it has allocated a budget of Rp451 trillion for the National Economic Recovery (PEN) program this year that will be used for health sector, social protection, and fiscal facilities for a number of sectors.

"The President has approved several programs related to the PEN with a budget of Rp451 trillion and is divided into three aspects, namely for health sector, social protection, and fiscal facilities for several sectors in MSMEs and corporations," said Coordinating Minister for Economic Affairs Airlangga Hartarto in a press statement after attending a limited meeting on evaluation of public activity restrictions (PPKM) policy, Sunday, as quoted from the Cabinet Secretariat's website.

 



According to Airlangga, the Indonesian Government will extend the property fiscal incentive in the form of government-borne VAT until June this year.

For flats / houses with a value of Rp2 billion, he explained, 50 percent of the government-borne VAT is given and calculated from the start of the contract and it is hoped that the house can be completed within nine months.

As for properties whose selling price is Rp2-5 billion, he added, they will receive 25% of the government-borne VAT.

According to him, the next program is the provision of luxury goods sales tax (PPnBM) tariff facilities, specifically for the automotive sector with the sales price below Rp200 million, such as low-cost green cars or LCGC.

As for vehicles with a price of Rp200-250 million, Airlangga said the PPnBM tariff is 15 percent in which 50 percent of the tariff is borne by the Government in the first quarter.

Another program approved by the President is the front loading strategy for social assistance  for street vendors and fishermen.

The number of participants is estimated to reach 2.76 million people, consisting of 1 million street vendors and shop owners and 1.76 million fishermen / residents under the category of extreme poverty. 

The amount given is Rp600 thousand per recipient and this program will be implemented soon.


(WAH)

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