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October 22, 2015

Indonesia 's Fifth Economic Policy Package


Following first, second, third and fourth economic policy package, the Government will immediately launch the fifth economic policy package.
Cabinet Secretary Pramono Anung said that President Joko ‘Jokowi’ Widodo had instructed his Economic Team and Cabinet Secretariat to immediately prepare a limited meeting to discuss the new package.

Speaking to reporters after the Government’s Working Meeting (RKP) at the State Palace, Jakarta on Wednesday (21/10), Pramono said:
“As for the fifth economic policy package, we’re currently preparing for it and we hope it will bring positive impacts for the business world and create new job opportunities.
Pramono also said that the fifth package would reflect President Jokowi’s strong will to create new job opportunities. He added that the draft of the new package was ready and the Government was still calculating when it would be launched by taking into account the latest development.
“The fifth package is being prepared by the Economic Team and we hope that it will be as successful as the third and fourth packages,” he said.
“So it’s not merely providing opportunities for the business world in order to be friendlier but also creating new job opportunities,” he added.
 
Pramono went on to say that during the meeting with board of directors of state-owned enterprises at the RKP, the President hopes that more state-owned enterprises would be world-class players in the construction sector, gas sector and also in other sectors and the Government will provide eases and facilities for those sectors.
“If necessary, we’ll do merging, conglomeration and strengthening those state-owned enterprises but the most important thing is that it is expected to bring big benefits for the state-owned enterprises themselves, and of course for the state,” he added.
In the meantime, commenting on the RKP attended by governors, regents and mayors from all over Indonesia, Pramono said that President Jokowi and Jusuf Kalla called on all governors, regents and mayors to follow the changes (in policies) because several permits are issued by the regions; thus, if the Central Government’s policies have changed and the regions cannot follow the changes, it will also pose problems.
Pramono added that President Jokowi also asked regional leaders to follow the rhythm of the central Government and problems that have so far posed in the regions are expected to be reported to the Central Government and made as a One-Door Integrated Policy managed by the Investment Coordinating Board (BKPM).
Asked about requests delivered by the regional leaders, Pramono said that many regions requested for the assistance in infrastructures such as the extension of runway (of the airports in the regions).
“They also requested for assistance in the repair of roads because roads are mostly managed by the Ministry of  Public Works through the existing agencies,” Pramono said.

In addition, Pramono also said that there must be a change in paradigm, changes in speed and changes in terms of which issues that are the responsibility of the Central Government, regional governments or a ministry.
“We’ll see whether the issue (repairing roads) would be handled by the Central Government or regional governments. As we might be aware, there are three kinds of roads: city/regency roads, provincial roads, national roads. Oftentimes we have no idea whether a certain road is the responsibility of the Central Government or a provincial government,” he said.


Jakarta, 23/10/2015 - Government has issued the Fifth Economic Policy Package on Thursday (22/10). It emphasizes on three policies of deregulation, namely asset revaluation, eliminating multiple taxation of Real Estate Investment Fund, Property and Infrastructure, as well as deregulation in Islamic banking.
The asset revaluation policy is issued since there are still many companies that have not revalued their assets, with the change in value of assets, either due to inflation or the rupiah depreciation. This policy is expected to help the company to improve its financial performance through improved value of the assets affected by the depreciation of the rupiah and inflation.
Second, multiple taxation elimination is provided as a product of the Indonesian capital market remains relatively limited, so that the capitalization of the Indonesia Stock Exchange (BEI) is relatively small compared to neighbouring countries. Thus, it is necessary to develop products such as the Collective Investment Contract (KIK) for Infrastructure, KIK - Real Estate Investment Fund (KIK-DIRE) and the like, which is in line with the deepening of financial market.
Finally, since it grows rapidly year to year, the government is going to encourage the growth of the Islamic finance industry by simplifying the regulatory and licensing for products of Islamic banking. Later, there will be codification of Islamic products, in which some certain code licences will be exempted. This also applies to other products related to the pawnshop by Islamic banking. However, the government will keep its prudence, especially gold pawn saved by many people.
For the banking sector, the government will provide facility to expand the range of Islamic banking in terms of opening branch offices. This will encourage efficiency so that prices and interest rates will be more affordable for the community.
Jakarta, 23/10/2015 MoF - Government has issued the Fifth Economic Policy Package on Thursday (22/10). It emphasizes on three policies of deregulation, namely asset revaluation, eliminating multiple taxation of Real Estate Investment Fund, Property and Infrastructure, as well as deregulation in Islamic banking.
The asset revaluation policy is issued since there are still many companies that have not revalued their assets, with the change in value of assets, either due to inflation or the rupiah depreciation. This policy is expected to help the company to improve its financial performance through improved value of the assets affected by the depreciation of the rupiah and inflation.
Second, multiple taxation elimination is provided as a product of the Indonesian capital market remains relatively limited, so that the capitalization of the Indonesia Stock Exchange (BEI) is relatively small compared to neighbouring countries. Thus, it is necessary to develop products such as the Collective Investment Contract (KIK) for Infrastructure, KIK - Real Estate Investment Fund (KIK-DIRE) and the like, which is in line with the deepening of financial market.
Finally, since it grows rapidly year to year, the government is going to encourage the growth of the Islamic finance industry by simplifying the regulatory and licensing for products of Islamic banking. Later, there will be codification of Islamic products, in which some certain code licences will be exempted. This also applies to other products related to the pawnshop by Islamic banking. However, the government will keep its prudence, especially gold pawn saved by many people.
For the banking sector, the government will provide facility to expand the range of Islamic banking in terms of opening branch offices. This will encourage efficiency so that prices and interest rates will be more affordable for the community. (as)
- See more at: http://www.noodls.com/view/91809D340FED5F632354CB8A4804BA2A80E30260?9427xxx1445828488#sthash.5Q1Twwnk.dpuf
Jakarta, 23/10/2015 MoF - Government has issued the Fifth Economic Policy Package on Thursday (22/10). It emphasizes on three policies of deregulation, namely asset revaluation, eliminating multiple taxation of Real Estate Investment Fund, Property and Infrastructure, as well as deregulation in Islamic banking.
The asset revaluation policy is issued since there are still many companies that have not revalued their assets, with the change in value of assets, either due to inflation or the rupiah depreciation. This policy is expected to help the company to improve its financial performance through improved value of the assets affected by the depreciation of the rupiah and inflation.
Second, multiple taxation elimination is provided as a product of the Indonesian capital market remains relatively limited, so that the capitalization of the Indonesia Stock Exchange (BEI) is relatively small compared to neighbouring countries. Thus, it is necessary to develop products such as the Collective Investment Contract (KIK) for Infrastructure, KIK - Real Estate Investment Fund (KIK-DIRE) and the like, which is in line with the deepening of financial market.
Finally, since it grows rapidly year to year, the government is going to encourage the growth of the Islamic finance industry by simplifying the regulatory and licensing for products of Islamic banking. Later, there will be codification of Islamic products, in which some certain code licences will be exempted. This also applies to other products related to the pawnshop by Islamic banking. However, the government will keep its prudence, especially gold pawn saved by many people.
For the banking sector, the government will provide facility to expand the range of Islamic banking in terms of opening branch offices. This will encourage efficiency so that prices and interest rates will be more affordable for the community. (as)
- See more at: http://www.noodls.com/view/91809D340FED5F632354CB8A4804BA2A80E30260?9427xxx1445828488#sthash.5Q1Twwnk.dpuf

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