Five Things The Government Must Do To Improve Post-Covid-19

Economy

[Sheren Shalomita Wulur - 18042030]

1. Carrying out massive spending to dampen the economic contraction due to the

pandemic Covid-19.

The government is accelerating the disbursement of capital expenditures,

accelerating appointments national treasury office, execute tenders, speed up

disbursement of spending social assistance and transfers to regional and village funds.

The goal of this acceleration directing to be able to adapt to new habits gradually,

solving post-pandemic problems, and strengthening reforms to get out of the middle

income trap.

2. The government forms a Committee for Handling Covid-19 and Economic Recovery

National.

The government formed a "Committee for Handling Covid-19 and Recovery National

Economy” which was stipulated based on Presidential Regulation Number 82 of the

Year 2020 and signed by the President today, Monday 20 July 2020. The formation of

this Committee takes into account extra-ordinary efforts carried out by the

Government in preparing programs and policies, as well as ensuring these programs

and policies can run (operational) in the field. In Presidential Decree Number 82 of

2020 was determined by the institutional Committee It has a simple and streamlined

structure. Therefore, this Committee consists of The Policy Committee determines

programs and policies, the Chief Executive who integrate the implementation of

policies, and the Task Force that implements and control the implementation in the

field. To lead the Policy Committee, appointed by the Coordinating Minister for the

Economy as Chairman, assisted by 6 Deputy Chairmen consisting of the

Coordinating Minister for MarVest, the Coordinating Minister for Political, Legal

and Security Affairs, the Coordinating Minister for PMK, the Minister of Finance,
 the Minister of Health and Minister of Home Affairs. Meanwhile, to help integrate

and coordinating the implementation of the policies set by the Committee Policy,

the Minister of BUMN is assigned as the Chief Executive.

3. The government provides low interest credit assistance, and prepares various

program so that MSMEs are revived. One of them is policy credit interest

restructuring and subsidies.

The government reduces interest payments for 6 months or subsidies credit interest.

Creditors with credit scores below 500 million get 6% at 3 the first month and 3% in

the second 3 months. Creditors with credit scores above 500 million up to 10 billion

get an interest subsidy of 3% in the first 3 months and 2% in the 3rd second month.

The government is also preparing for people who have not been registered as a

customer in the banking and micro financial system to actively register in

institutions such as UMi, PMN, and Mekar.

4. The government places funds in banks to turn the economy around.

In order to accelerate national economic recovery, the government took steps to

help business actors recover through support banking. Government policy is

carried out by using the authority of the Minister of Finance (Menkeu) Sri Mulyani

as General Treasurer The State to place money from cash management at

Commercial Banks which in the first stage is done at the Association of State-

Owned Banks (HIMBARA) namely Bank Mandiri, Bank BRI, Bank BNI and Bank

BTN. Implementation related to the placement of state funds in cash management

is regulated in PMK 70/PMK.05/2020.

5. The government guarantees working capital loans for corporations.

The government launched a working capital loan guarantee for micro, small and

business (MSMEs) in the context of National Economic Recovery in Buildings

Jamkrindo, Jakarta on Tuesday (7/7). Launching of this working capital credit

guarantee marked by the signing of the working capital loan guarantee cooperation
between PT Indonesian Credit Guarantee (PT Jamkrindo) and PT Indonesian Credit

Insurance (PT Askrindo) with PT Bank Mandiri Tbk., PT Bank Rakyat Indonesia (BRI)

Tbk., PT Bank Negara Indonesia (BNI) Tbk., PT Bank Negara Savings (BTN) Tbk., PT

Bank Indonesian People Agroniaga (BRI Agro) Tbk., PT Bank BJB Tbk., PT Bank

Jatim Tbk., PT Bank Centra Asia (BCA) Tbk., PT Bank Permata Tbk., PT Bank Jateng

Tbk., Nobu Bank and Maybank. While the symbolization of working capital loans from

banks to MSMEs with guarantees from PT Jamkrindo and PT Askrindo represented by

PT Cahaya Gasdom, Dewi Katmujiwati, PT Subaresta Teknik Indonesia, Ivory and Toy

Amen.