Covid-19 (Corona Virus Disease) Article - Implementation of the National Economic Recovery Program in Handling Covid-19 Pandemic Based on PP No.23 of 2020

To implement the provisions of The  Government Regulations in lie of Laws on State Financial Policy and Financial System Stability for Handling Corona Virus Disease 2019 (Covid-19) And / Or In Facing Threats That Endanger The National Economy And/or Financial System Stability, The Government issued Government Regulation of the Republic of Indonesia Number 23 of 2020 concerning the Implementation of the National Economic Recovery Program In Supporting State Financial Policies for Handling the Corona Virus Disease 2019 (Covid-19) and / or Facing Threats that Endanger the National Economy and / or Financial System Stability As well as Protecting the National Economy ("PP No. 23 of 2020")

The National Economic Recovery Program, hereinafter referred to as the PEN Program, is a series of activities for the recovery of the national economy which is part of the country's financial policies implemented by the Government to accelerate the handling of the 2019 Corona Virus Disease  (COVID19) pandemic and / or face threats that endanger the national economy and / or financial system stability and as well as protecting the national economic . In implementing the PEN Program, the Government, undertakes: a. State Investment (PMN); b. Funds Placement; c. Government Investment; and / or d. Guaranty. In addition, the Government can also carry out policies through state expenditure in accordance with statutory provisions.

In implementing the PEN Program, the Government may carry out a State Investment in State-Owned Enterprises (SOE/BUMN) and / or SOE/BUMN subsidiaries affected by covid-19. The government can also place funds intended to provide liquidity support to banks that restructure loans or provide additional working capital loans. In addition, the placement of funds is carried out to participating banks (at least 51% of shares are owned by Indonesian citizens or legal entities, banks in the healthy category, including the 15 largest banks with assets). For the Guaranty conducted by the Government, it can be done directly by the Government and / or through the appointed Guarantee business entity. For the implementation of the Guarantee, the Government shall allocate the Guarantee reserve fund and the fee of the Guarantee service originating from the State Revenue and Expenditure Budget. The PEN program through state expenditure includes but is not limited to the provision of interest subsidies to banking debtors, finance companies and Government credit channeling agencies that meet the requirements. For the financing of the PEN Program, the Government may issue SBN purchased by Bank Indonesia on the primary market (Article 21 PP No.23 of 2019).

In Article 26 of PP No.23 of 2020 stipulates that the settlement of bilateral trade transactions can be carried out using local currency (Local Currency Settlement / LCS) which the settlement of bilateral trade transactions conducted by business actors in Indonesia and in partner countries using currencies individual countries. In the implementation of bilateral trade transactions using the local currency (LCS), ministries / agencies can provide facilities, incentives, acceleration of export-import services in accordance with statutory provisions. Further provisions regarding bilateral trade transactions using local currency (LCS) are regulated by Bank Indonesia Regulation. The supervision and evaluation of the implementation of the PEN Program are carried out and reported by the Minister to the President. The Financial and Development Supervisory Agency conducts internal supervision of the implementation of the PEN Program.

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