Southeast Asia

Sum of Measures 1—5 (Total Package)

Total Package in USD Million: 115,775.27
% of GDP (2019): 10.94%
% of Regional Total Package: 28.36%
Package Per Capita in USD: 432.54
Note: Measures 9 and 10 are added to the sum of Measures 1-5.
Measure Amount (Local) Amount (USD) Details Update Source
01 - Liquidity Support info_outline IDR222,422,636,190,480 USD14,638,293,840
01A - Short-term lending info_outline IDR56,000,000,000,000 USD3,685,526,208

Bank Indonesia (BI) has injected liquidity to the money market and banking industry through various policy measures including (i) more than IDR56 trillion through a term-repo mechanism with underlying SBN transactions held by the banking industry; No amount/estimate: (ii) increasing the maximum duration for repo and reverse repo operations (up to 12 months); (iii) increasing the size of of the main weekly refinancing operations as needed; and (iv) A Presidential decree has expanded BI’s authority to maintain the stability of the financial system including by facilitating BI liquidity assistance to banks.

01B - Support policies for short-term lending info_outline IDR117,800,000,000,000 USD7,752,767,631

BI announced increasing monetary easing through quantitative easing as follows: (i) No amount/estimate: Expand monetary operations by providing banks and the corporates a term-repo mechanism with government bonds (SUN) or sharia bonds (SBSN) underlying transactions of tenors up to 1 year; (ii) Lower the reserve requirement ratios effective April 1 to generate IDR22 trillion in additional liquidity and further reductions that took effect on May 1, 2020; (iii) As of May 8, IDR95.8 trillion from the relaxation of the additional demand deposit obligations to meet the Macroprudential Intermediation Ratio (MIR) for conventional commercial banks as well as Islamic banks/Islamic business units for a period of 1 year, effective from May 1, 2020 (Note that SBSN refers to government Islamic securities); and (iv) BI raised the the liquidity buffer ratio by 200 basis points for conventional banks and 50 basis points for islamic banks to be fulfilled only via government bonds purchased in the primary market.

01C - Forex operations info_outline IDR48,622,636,190,476 USD3,200,000,000

(i) BI lowered the foreign currency reserve requirement by 4% to increase foreign currency liquidity in the banking industry by around USD3.2 billion; No amount/estimate: (ii) BI announced increasing the frequency of foreign exchange swap auctions for 1, 3, 6, and 12 month tenors from three times per week to daily auctions; and (iii) BI has intervened in the spot and domestic non-deliverable foreign exchange markets, and in the domestic government bond market to maintain orderly market conditions.

02 - Credit creation info_outline IDR250,000,000,000,000 USD16,453,242,002
02A - Financial sector lending/funding info_outline
02B - Support policies for long-term lending info_outline

No amount/estimate: (i) BI reduced the policy rate by 100 bps cumulatively in February, March, June, and July 2020, to 4.0%; (ii) Otoritas Jasa Keuangan (OJK) has relaxed loan classification and loan restructuring procedures for banks to encourage loan restructuring and extended the deadline, by 2 months, for publicly listed companies to release their annual financial reports and hold annual shareholders meetings.

02C - Loan guarantees IDR250,000,000,000,000 USD16,453,242,002

(i) The third stimulus package (see Measure 5) includes IDR150 trillion (0.9% of GDP) additional financing for a national economic program, including to support credit guarantees for the private sector. As of June 26, the Indonesian Exports Financing Agency (LPEI) announced it will provide credit guarantees for PT Bank Mandiri Tbk to increase export financing to support the National Economic Recovery program. On July 7, IRD123.46 trillion UMKM credit guarantee program for working capital loans under the National Economic Recovery plan. (ii) May 19, Guarantees for working capital loans provided by banks for debtors, especially MSMEs. (iii) July 29, INR100 trillion loan guarantee scheme for targeted businesses in priority sectors such as tourism, automotive, textile and garment, and electronics.

03 - Direct long-term lending info_outline IDR695,200,000,000,000 USD45,753,175,358
03A - Long-term lending info_outline IDR695,200,000,000,000 USD45,753,175,358

July 27, INR15 trillion loan scheme for the provincial governments of Jakarta and West Java and INR11.5 trillion lending for provincial governments to support economic recovery to be funded by proceeds from central bank purchases of government bonds. These are part of the new IDR695.2 trillion loan program announced by the government as part of the National Economic Recovery (PEN) program consisting of financing support to regional and local goverments, and fund placements in regional development banks.

03B - Forbearance
04 - Equity support info_outline
05 - Government support to income/revenue IDR591,533,200,000,000 USD38,930,555,566

In addition to the first two fiscal packages amounting to IDR33.2 trillion (0.2% of GDP), the government announced a major stimulus package of IDR405 trillion (2.6% of GDP) on March 31, 2020, including IDR255 trillion (1.6% of GDP) in additional spending and tax reliefs, which was further expanded to IDR641 trillion (3.9% of GDP) on May 19. As of June 4, the government's fiscal package amounted to IDR677.2 trillion according to the Ministry of Finance. The stimulus packages comprise (i) support to the health care sector to boost testing and treatment capability for COVID-19 cases, (ii) increased benefits and broader coverage of existing social assistance schemes to low-income households such as food aid, conditional cash transfers, and electricity subsidy, (iii) expanded unemployment benefits, including for workers in the informal sector, (iv) tax reliefs, including for the tourism sector and individuals (with an income ceiling), and (v) permanent reductions of the corporate income tax rate from 25% to 22% in 2020−21 and 20% starting in 2022.

05A - Health

(i) March 13, The second fiscal package includes incentives for medical staff dealing with COVID-19 (IDR 15 million to medical specialists, IDR 10 million to physicians and dentists, IDR 7.5 million to nurses and IDR 5 million to other medical staff members; IDR 300 million in case of death of a medical worker) for a budget of IDR 6.1 trillion; (ii) March 31, Under the third fiscal package, authorities announced an additional IDR75 trillion for healthcare; (iii) May 13, See (ii) under Measure 5B.

05B - Non-health

No amount/estimate: (i) The government announced plans to reduce the number of restricted import goods by up to 50 percent on steel producers, and their derivatives, strategic food products (manufacturing industry inputs); horticultural commodities; animals & animal products; medicine, medicinal ingredients food. (ii) May 13, Postponing the payment of excise duties on imports of certain goods and temporary elimination of import tariffs, VAT and income taxes on certain medical and pharmaceutical products used in the treatment of COVID-19. (iii) May 19, The Ministry of Finance will provide subsidies, compensation, State Capital Inclusion, and bailout fund to maintain the sustainability of state-owned enterprises (SOEs) under the expanded fiscal package announced in May 19 in Measure 5. Total government support to SOEs is IDR104.38 trillion for Above The Line funds and IDR44.92 trillion for Below The Line funds. (iv) June 17, Final income tax exemption of 0.5% of the gross circulation borne by the government for April to September 2020 for MSMEs conditional on gross income not exceeding IDR4.6 billion a year. (v) June 18, IDR10 billion interest rate subsidy for MSMEs in as part of the National Economic Recovery Program. (vi) June 19, IDR35.2 trillion in interest rate subsidies for banks and non-bank financial institutions as part of the National Economic Recovery Program. (vii) June 19, Authorities announced a taxbreak for manufacturers of personal protective equipment and household antiseptic products by offsetting 30% of production costs between March and September 2020 against taxable income. (viii) June 24, IDR30 trillion allocated to HIMBARA (State-owned Banks Association) for lending and interest subsidies to MSMEs. (ix) No amount/estimate: June 25, A series of tax incentives and relief measures for producers of medical devices, taxpayer contributions to COVID-19 relief efforts, any income from government compensation, incentives and leases paid to those involved in handling COVID-19 efforts, and on the buyback of exchange-traded shares of WP Limited Companies. (x) June 25, IDR1.088 trillion in financing for ultra micro loans (UMi) through financial institutions UMi financing channels of which IDR400 billion is earmarked for PT Pegadian (state-owned pawnbroker). (xi) No amount/estimate: June 29, Corporate income tax discounts for publicly listed companies: 19% in the tax year 2020 and 2021, and 17% in the 2022 tax year; conditional on certain ownership criteria. (xii) July 14, Interest subsidy and loan principal payment relief scheme for MSMEs as part of the Nationa Economic Recovery (PEN) program involving a total amount of INR 35.28 trillion for 60.66 million accounts. (xiii) August 27, The President announced an expanded wage subsidy program targeting 15.7 million workers earning under IDR5 million and are compliant with mandated social security contributions. (xiv) No amount/estimate: September 9, The President issued Government Regulation No. 49 easing social security regulations for members by extending deadlines and reducing the amounts for certain contributions. [update] (xv) No amount/estimate: September 14, The Ministry of Industry proposed a 0% tax on car purchases to support the recovery of the automotive industry. [update]

06 - Budget reallocation info_outline IDR182,460,000,000,000 USD12,008,234,142

(i) The 2020 state budget allocated IDR17.73 trillion worth of state capital injections (PMN) to several state-owned enterprises (SOEs); (ii) Reallocations of IDR62 trillion for state budget, IDR72 trillion for village funds, IDR17.2 trillion for healthcare; May 5: (iii) No amount/estimate: Postponed the distribution of part of the General Allocation Fund and/or Revenue Sharing Funds to local governments that do not meet the provisions of the 2020 Budget Year Budget; and May 8: (iv) further reallocations of IDR4.18 trillion from the Regional Incentive Fund to COVID-19 handling and IDR9.35 from the Special Allocation Fund to health activities.

07 - Central bank financing government IDR783,770,000,000,000 USD51,582,229,935
07A - Direct lending & reserve drawdown IDR617,560,000,000,000 USD40,643,456,522

(i) April 21, BI directly purchased IDR1.7 trillion (USD108 million) worth of sharia sovereign bonds during an auction held by the government for the first time. As of August 18, BI has purchased IDR42.96 trillion in the primary market through auction schemes, greenshoe options and private placements under the April 16 Joint Decree with the Ministry of Finance. ii) No amount/estimate: In line with BI's expanded financial stability mandate as mentioned in (v) of Measure 1A, BI is authorized to finance the deposit insurance agency (LPS) for bank solvency problems. (vi) July 6, BI agreed to directly purchase IDR397.6 trillion worth of government bonds at 0% interest and be a standby buyer for IDR177 trillion in auctions at 1 percentage point below the benchmark rate to help finance the central government's pandemic response efforts under the July 7 Joint Decree with the Ministry of Finance. As of August 18, BI has made IDR82.1 trillion in primary market purchases through private placements under this agreement.

07B - Secondary purchase: government securities IDR166,210,000,000,000 USD10,938,773,412

(i) From January to April, IDR166.21 trillion purchases of government securities (SBN) in the secondary market by BI.

08 - International Assistance Received IDR2,128,181,657,249,200 USD140,061,951,321
08A - Swaps info_outline IDR2,075,251,967,166,700 USD136,578,491,321

April 7, (i) Repurchase agreement line facilities with several institutions: USD60 billion repo line facility for Foreign and International Monetary Authorities (FIMA) with the United States Federal Reserve (On July 29, The Federal Reserve announced the extension of its dollar liquidity swap lines and FIMA repo facility to March 31, 2021) ); USD2.5 billion with the Bank of International Settlements; USD3 billion with the Monetary Authority of Singapore (MAS); and USD0.5-1 billion with other central banks in the region. (ii) Bilateral currency swap arrangements with several central banks: CNY200 billion (equivalent to USD30 billion) with the People's Bank of China; USD22.76 billion with the Bank of Japan; USD10 billion with the MAS; and KRW10.7 trillion (equivalent to INR115 trillion) with the Bank of Korea.

08B - International loans/grants IDR52,929,690,082,524 USD3,483,460,000
08B1 - Asian Development Bank IDR23,102,741,694,429 USD1,520,460,000

(i) March 30, The ADB approved a USD3 million grant under COVID-19 Emergency Response to finance procurement of testing kits, other goods and services for front line health workers and general population; (ii) April 23, The ADB approved a USD1.5 billion loan to support the Government of Indonesia’s efforts to alleviate the impact COVID-19 on public health, livelihoods, and the economy; (iii) April 24, USD750,000 grant under TA: Policy Advice for COVID-19 Economic Recovery in Southeast Asia; and (iv) USD1.5 million under TA: Regional Support to Address the Outbreak of COVID-19. (v) June 23, USD40,000 grant under the TA on Enhancing Public-Private Partnerships Projects through Support for Law and Policy Development and Transaction Advisory Services. (vi) June 30, USD100,000 grant under the TA on Quality of Jobs and the Future of Work. (vii) July 2, USD15 million loan for the Dairy Farmer Support and Food Security Project. July 24, USD70,000 grant under the TA on Due Diligence and Capacity Development of Trade Finance Program Banks (Subproject 3).

08B2 - Other IDR29,826,948,388,095 USD1,963,000,000

(i) May 11, USD2 million grant from the UN COVID-19 Response & Recovery Fund supporting the Government of Indonesia and key stakeholders to scale-up inclusive social protection programs. (ii) May 15, USD700 million loan from World Bank to support Indonesia's Social Assistance Sytem and COVID-19 response. (iii) USD11 million worth of grants from the United States Agency for International Development (USAID) for health and humanitarian assistance. (iv) May 22, USD250 million World Bank loan for Indonesia's Emergency Response to COVID-19 Program. (v) May, USD750 million loan from the Asian Infrastructure Investment Bank (AIIB) as co-financing for the ADB loan in (ii) under Measure 8B1. (vi) June 22, USD250 million loan from the AIIB co-financed with the World Bank under a COVID-19 Crisis Recovery Facility for Indonesia.

09 - International Assistance Provided
09A - Swaps info_outline
09B - International loans/grants
10 - No breakdown
11 - Other Economic Measures

(i) Effective 18 March 2020 to 31 May 2020, Temporary elimination of import certification requirements on imports of onions and garlic; (ii) Effective 18 March 2020 to 30 June 2020, Temporary export ban on antiseptic, raw materials to fabricate masks, personal protective equipment (PPE), ethyl alcohol and masks; (iii) Effective 23 March 2020 to 30 June 2020, Temporary elimination of import certification requirements on imports of certain products, e.g. masks and personal protective equipment; (iv) To ease stock market volatility, the regulator OJK has introduced a new share buyback policy (allowing listed companies to repurchase their shares without a prior shareholders’ meeting) and introduced limits on stock price declines. (iv) May 22, The government announced it willl start start charging 10 percent value-added tax (VAT) on imported digital goods and services, including video and music streaming subscriptions, starting July 1 in an attempt to boost state revenue. On July 7, authorities confirmed that it is imposing 10% value-added tax on sales by non-resident foreign firms which sell digital products and services in Indonesia worth at least IDR600 million rupiah (USD41,667) a year or which generate yearly traffic from at least 12,000 users.

12 - Non-Economic Measures

(i) The government has adopted various containment measures, including temporary bans on domestic and international air and sea travel, screening at ports of entry, school closures, other restrictions on public events, and obligations on masks and reduced transportation. The government has also banned Indonesia’s traditional annual exodus for Muslim holidays in an effort to curb the spread of the virus from Jakarta and other high-risk regions. (ii)) June 2, The government canceled the haj pilgrimage to Mecca due to COVID-19. . (iii) June 4, The government an easing of restrictions in Jakarta by gradually allowing workplaces, places of worship, shopping centres and recreational venues with strict health guidelines such as a 50% capacity limit and ensuring physical distancing. (iv) June 9, Domestic flights resumed at 70% capacity with observance of strict health protocols.