The government launches 16th economic policy package to handle the deficit

MACROECONOMICS - JAKARTA. The government continues to make efforts to deal with the trade balance and transactions that are still in deficit. For this reason, the government launched 16th economic policy package.

The government announced this policy at the Presidential Office on Friday (11/16). Coordinating Minister for Economic Affairs Darmin Nasution said there were three significant points in this policy package.

First, the government will expand the tax holiday reduction facility to encourage direct investment in pioneer industries from upstream to downstream. In this case, the government has improved the regulations as stated in PMK 35/2018.

Second, the government has again relaxed the negative investment list (DNI). The aim is to open opportunities for securing domestic capital, including Small and Medium Enterprises and Cooperative. The government also increased partnership for MSMEs and Cooperatives with the intention of strengthening their business.

Third, the government strengthens foreign exchange as a provision of tax incentives. For example, by applying the obligation to include DHE from exports of natural resources products such as mining, plantations, forestry, and fisheries. (Translator: Barratut Taqiyyah Rafie)