Jakarta: Finance Minister Sri Mulyani Indrawati has projected that the realization of state revenue in 2020 will derease by around ten percent due to the ongoing coronavirus disease 2019 (covid-19) outbreak.
"State revenue is expected to decline," the former World Bank managing director stated here on Wednesday, April 1, 2020.
According to the minister, the decrease will be caused by a number of factors, the general decline in economic activity, introduction of new tax incentives, and drop in oil prices.
"The drop in oil prices will decrease our non-tax revenues," Sri Mulyani stated.
Due to this emergency situation, President Joko "Jokowi" Widodo recently issued Government Regulation in lieu of Law on State Finance Policy and Financial System Stability. The regulation aims to serve as a foundation for the Government, banking authorities, and financial authorities to take extraordinary measures to ensure the people’s health, safeguard national economy, and maintain financial system stability.
In addition, the government also allocated up to Rp4015.1 for the handling of the ongoing covid-19 outbreak. It includes Rp75 trillion for healthcare spending, Rp110 trillion for social protection, Rp70.1 trillion for tax incentives and credit for enterprises, and Rp150 trillion for economic recovery programs, including credit restructuring and financing for small and medium businesses.