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Indonesia Investment Authority Will Be Complementary to Economic Recovery in 2021

Jakarta, 21/01/2021 MoF - Minister of Finance Sri Mulyani Indrawati stated that the government's strategic steps, such as the Job Creation Law (UU Cipta Kerja) and the formation of institutions, such as the Sovereign Wealth Fund or the Indonesia Investment Authority (INA), will become instruments to support economic recovery by 2021.

"These various instruments will be able to complement our efforts in promoting economic recovery, while increasing vigilance and prudence," said the Minister of Finance in the 11th Kompas100 CEO Forum "Let's Collaborate; Rising in Pandemic Era" which was held online, Thursday (21/01).

In adition, the Government will also continue to provide various fiscal policy incentives, including tax incentives to the business world. Support is given to various industries that have strategic roles so that Indonesia will be able to build a stronger industrial sector.

"Our Income Tax (PPh), Value Added Tax (PPN), and The General Tax Provisions and Procedures Law (KUP) will continue to be adjusted in order to provide a tax regime that is friendly to the business world. However, our task is still to collect tax revenue because it is a source of state spending to protect Indonesia in the future. Therefore, the Ministry of Finance will continue to balance between collecting tax revenue and our goal of providing business support and incentives,” said the Minister.

The Minister of Finance also stated that the 2021 State Budget strategic policy will continue to support the sustainability of the economic recovery program, especially for handling health, social protection, sectoral ministries/agencies and local governments, support for MSMEs and corporate financing, and business incentives.

"Social protection programs in 2021 which reach Rp408 trillion are also for our people who are still facing a transition period and the pressures that have not fully recovered, both in the form of social assistance and assistance for underprivileged students in the form of scholarships," said the Minister of Finance.

The education, infrastructure, and information and communication technology (ICT) sectors will also be the government's focus in 2021.

"(The budget) for education is Rp550 trillion and health Rp169 trillion. We will also continue to encourage the reconstruction of infrastructure in a sustainable manner, including road infrastructure and ICT infrastructure, Rp417 trillion for infrastructure and Rp26 trillion for ICT," said the Minister. (dep/mr/hpy)