Covid-19 (Corona Virus Disease) Article - State Financial Policy In Covid-19 Handling Based On Government Regulation Number 1 Of 2020

The Government issued 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 ("Government Regulation No.1 of 2020") to meet the economic recovery needs that govern the state financial policies in various fields. Article 1 Paragraph 4 of Government Regulation No.1 of 2020, regulated that the state financial policy covers the state revenue policy including taxation policy, state expenditure policy including in ??regional finance policy, and financing policy.

In Article 2 Paragraph 1 of Government Regulation No.1 of 2020 stipulates that in the framework of implementing state financial policies, the Government shall be given the authority to:

1. set limits on the budget deficit, with the following conditions:
   1. exceeded 3% of Gross Domestic Product ("GDP") during the handling of Covid-19 and / or to face threats that endanger the national economy and / or financial system stability no later than the end of the 2022 fiscal year;
   2. since the 2023 budgeting year the deficit will return to the highest of 3% of GDP; and
   3. adjusting the amount of the deficit referred to in the two points above is done in stages
2. make adjustments to mandatory spending
3. shifting the budget between organizational units, functions, and / or between programs
4. take actions that effected the expenditure on the burden of the State Budget (APBN) and determine the process and method of procurement of service goods
5. use the budget sourced from the Remaining Over Budget (SAL), an endowment and an accumulation of endowment funds for education, funds controlled by the state with certain criteria, and funds managed by the Public Service Agency
6. issue state bonds and / or state sharia securities with specific objectives, especially due to the Covid-19 pandemic to be bought by Bank Indonesia, BUMN, corporate investors, or retail investors.
7. determine the Budget funding sources originating from within and / or abroad;
8. provide loans to the Indonesia Deposit Insurance Corporation;
1. prioritizing the use of budget allocations for certain activities (refocusing), adjusting the allocation, and / or cutting/delaying the distribution of the Transfer to Regional and Village Fund budget, with certain criteria;
10. provide bequestS to local governments; and/or
11. simplifying the mechanism and simplification of documents in the financial sector.

The implementation of state financial policies shall be carried out to coincide with good governance implementation. Alterations in posture and / or details of the State Budget (APBN) in the context of implementing state financial policies are regulated by or based on Presidential Regulation (Article 12 of Government Regulation No.1 of 2020).

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