Covid-19 (Corona Virus Disease) Article - State Financial Policy And Financial System Stability For The Handling Of Covid-19

The Corona Virus Disease 2019 (Covid-19) pandemic has an impact on slowing national economic growth and has also impacted on the deterioration of the financial system as indicated by the derivation in various domestic economic activities. As an effort of the Government to conduct the health and the national economy rescue and take mitigation actions in maintaining financial sector stability, the Government issued 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").

In the context of saving the national economy and financial system stability, the Government and related institutions have undertaken efforts to deal with Covid-19 through various relaxation policies related to the implementation of the State Budget (APBN) in particular by increasing spending on health, spending on social safety nets ( social safety net), and economic recovery, and strengthen the authority of various institutions in the financial sector.

Government Regulation No.1 of 2020 also specifically regulates that Members of the Financial System Stability Committee (KSSK), Secretary of the KSSK, members of the KSSK secretariat, and officials or employees of the Ministry of Finance, Bank Indonesia, the Financial Services Authority, and the Deposit Insurance Corporation, and other officials, who are related with the implementation of this Government Regulation No.1 of 2020, shall not be prosecuted both in civil and criminal if in carrying out its duties based on good faith and in accordance with the provisions of the legislation (Article 27 Paragraph 2 of Government Regulation No.1 of 2020) and all actions including the decisions taken based on Government Regulation No.1 of 2020 shall  not be the object of a lawsuit that can be submitted to the state administration court (Article 27 Paragraph 3 Government Regulation No.1 of 2020).

Although it has been regulated as in the Article 27, certainly the implementation of the State Financial Policy and Financial System Stability in the framework of Covid-19 Handling need to continue to hold the transparency and should be monitored by related institutions and by the public so that this regulation will not utilized for the benefit of certain parties only and its implementation can run effectively as the Government's efforts in maintaining financial stability during this Covid-19 Handling period.

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