Economic Stimulus in Facing Coronavirus Impact
10 March 2020
Corona outbreaks have become the main topic in many countries lately. Moreover, until now the spread of the plague found in Wuhan, China last December has not been controlled. This epidemic not only caused casualties, but also affected the economies of many countries. The poll projected that most major economies in the Asian region would slow down significantly, not grow at all or even decline directly in the current quarter.
Minister of Finance
Minister of Finance, Sri Mulyani Indrawati, claimed to have pocketed several alternative policies to anticipate the impact of the corona virus into the country.
- One of them is giving discounts for domestic tourists who want to go to tourist destinations.
- To minimize the impact of the corona virus, the government also seeks to encourage consumption through social assistance.
- Besides, Ministry of Finance is also looking at overall economic growth and steps that can be taken in the 2020 APBN to remain stimulus.
Financial Services Authority
Following to that, the Financial Services Authority (OJK) has prepared a number of stimulus to maintain economic growth amid the spread of Coronavirus outbreaks in various countries.
The policies are countercyclical in nature including
- Relaxation of regulation in credit asset quality assessment with a ceiling of up to Rp10 billion based on one pillar, namely the accuracy of principal and/or interest payment on credit, and
- elaxation of regulation in credit restructuring, which is distributed to debtors in sectors affected by the spread of the Coronavirus and applicable up to 1 year after being stipulated with the possibility of an extension period, if necessary.
These policies are expected to be able to mitigate the impact of the global economic weakening and to maintain national economic stability.