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This is the Government Strategy to Avoid Corona Virus 'Infecting' Economy

Jakarta, 13/02/2020 MoF - The negative impact of the Corona virus is estimated to disrupt China's economic growth between 1.2-1.8 percent. This negative effect will also put pressure on the Indonesian economy, given that China is a large economic partner. As a result, there has been a decline in the performance of the tourism sector, international trade and investment flows.
 
Therefore, the government cooperates to counter the effects of the corona virus 'infecting' or weakening the Indonesian economy. This was stated in a joint press conference with the Ministry of Finance, the Ministry of Tourism, and the Presidential Staff Office (KSP) at KSP office on Thursday, (13/02).
 
First the government set up an information center (posko) in KSP related to the latest development of the corona virus so that people no need to confirm each ministry/institution (K/L) said Chief of Staff of Presidency, Moeldoko.
 
From the Ministry of Finance, Arif Baharudin Head of the Fiscal Policy Agency ad interim explained anticipatory steps including accelerating ministries/institutions spending, especially social assistance such as Family Hope Program (PKH), supporting the construction of tourist destinations, accelerating labor-intensive spending, and increasing the People's Business Loans (KUR) program both from the recipient, ceiling and credit without collateral.
 
"We are trying to maintain public consumption as our anticipatory steps. First we hurry the realization of ministry/institution expenditure, especially for social assistance expenditure such as PKH and health budget, and non-operational expenditure. We can also revive existing tourist destinations. The Ministry of Finance will support by preparing fiscal and non-fiscal policies to stimulate the tourism sector. Third, we encourage and accelerate labor-intensive spending for productive activities that need many of labors, especially infrastructure spending at the central and regional levels. Morever, namely accelerating the sharpening of the People's Business Credit program (KUR), including the expansion of the target. For example, KUR recipients from 6 million to 10 million, the ceiling is increased and loans without collateral are also increased," he explained.
 
In addition, Director of International and Public Affairs of the Director General of Customs and Excise Syarif Hidayat said the anticipation of the corona virus at the border such as in Malaysia, Singapore for export-import matters had coordinated with relevant agencies. Likewise, coordination with Angkasa Pura both at sea and in the air, law enforcement officers, and others for incoming goods. In accordance with the Ministry of Trade's regulation, the prohibition is only for live animals originating from China and those transiting to China that are prohibited from entering Indonesia. There are no other items beside live animals.
 
Raden Kurleni Ukar or Nike, Deputy of Strategic Policy at the Ministry of Tourism and Creative Economy (Kemenparekraf) said that the tourism sector was the most affected. Therefore, Kemenparekraf coordinates with the airline and the Ministry of Finance to provide the right incentive package. In addition, Kemenparekraf also requested or appealed to all ministries/institutions to conduct official travel in tourist destinations and ask the media to intensify the promotion of domestic destinations.
 
"To overcome potential loss, we are looking for strategies to open new tourism markets. The Minister has coordinated with airlines to open up opportunities to fill closed China slots. We continue to coordinate strategies, what incentives do we need for discounts. We also want to help the tourism industry by proposing an incentive package with the Ministry of Finance. We also appeal to all ministries /institutions to travel meetings in tourist destinations. We also want the media to spread the message to take advantage of domestic destinations, don't go abroad," she concluded. (nr/ds/aw)