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TAX UPDATES - 03/2020

Covid-19 Poses Threat to National Economy, Indonesia Fortifies Regulations to Shield State Finance and Financial System Stability

  • By admin
  • 06 April 2020

Covid-19 Poses Threat to National Economy, Indonesia Fortifies Regulations to Shield State Finance and Financial System Stability

The implications of the Covid-19 pandemic in Indonesia have already made an impact in slowing down national economic growth, decline in State income as well as the rising state expenditures and financing. Such issues pose a definite threat to the National economy. Thus, policies have been rolled out by the Government in support of health preservation and the national economy.

After the government's move in handling the Covid-19 pandemic in the issuance of tax incentives for taxpayers who are affected by the Covid-19 outbreak through Minister of Finance Regulation No. PMK 23/PMK.03/2020 ("PMK23") as well as tax relaxations, as stipulated in DGT Circular Letter SE -13/PJ/2020, the government has recently issued a new policy, namely Government Regulation in Lieu of Acts No. 1 Year 2020 (“PERPPU No.1 of 2020”). This is concerning State Finance Policies and Financial System Stability in handling the Covid-19 pandemic, in order to face the threats that may jeopardize the national economy and/or financial stability.

 

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