Indonesia to Announce the 16th Economic Policy Package Tomorrow
Indonesian Chief Economics Minister Darmin Nasution said the Indonesian government will announce the 16th economic policy package on Thursday morning (31/08). This new package will aim to boost investment and economic growth of Indonesia, Southeast Asia's largest economy.
Indonesian President Joko Widodo himself will unveil the package at the Indonesia Stock Exchange building in Jakarta where he is scheduled to witness an event. Widodo will only present a general outline of the new economic policy package, while Nasution is expected to provide more details in a separate event later on Thursday (31/08).
The package will deal with the single submission of permit documents in a bid to curtail the long bureaucratic process (red tape).
Economic Stimulus Packages of the Indonesian Government:
| Package | Unveiled | Main Points |
| 1st | 9 September 2015 |
• Boost industrial competitiveness through deregulation • Curtail red tape • Enhance law enforcement & business certainty |
| 2nd | 30 September 2015 |
• Interest rate tax cuts for exporters • Speed up investment licensing for investment in industrial estates • Relaxation import taxes on capital goods in industrial estates & aviation |
| 3rd | 7 October 2015 |
• Cut energy tariffs for labor-intensive industries |
| 4th | 15 October 2015 |
• Fixed formula to determine increases in labor wages • Soft micro loans for >30 small & medium, export-oriented, labor-intensive businesses |
| 5th | 22 October 2015 |
• Tax incentive for asset revaluation • Scrap double taxation on real estate investment trusts • Deregulation in Islamic banking |
| 6th | 5 November 2015 |
• Tax incentives for investment in special economic zones |
| 7th | 4 December 2015 |
• Waive income tax for workers in the nation's labor-intensive industries • Free leasehold certificates for street vendors operating in 34 state-owned designated areas |
| 8th | 21 December 2015 |
• Scrap income tax for 21 categories of airplane spare parts • Incentives for the development of oil refineries by the private sector • One-map policy to harmonize the utilization of land |
| 9th | 27 January 2016 |
• Single billing system for port services conducted by SOEs • Integrate National Single Window system with 'inaportnet' system • Mandatory use of Indonesian rupiah for payments related to transportation activities • Remove price difference between private commercial and state postal services |
| 10th | 11 February 2016 |
• Removing foreign ownership cap on 35 businesses • Protecting small & medium enterprises as well as cooperatives |
| 11th | 29 March 2016 |
• Lower tax rate on property acquired by local real estate investment trusts • Harmonization of customs checks at ports (to curtail dwell time) • Government subsidizes loans for export-oriented small & medium enterprises • Roadmap for the pharmaceutical industry |
| 12th | 28 April 2016 |
• Enhancing the ease of doing business in Indonesia by cutting procedures, permits and costs |
| 13th | 24 August 2016 |
• Deregulation for residential property projects for low-income families |
| 14th | 10 November 2016 |
• Creating a roadmap for the nation's e-commerce industry: - easing and widening access to funding - offer tax incentives - harmonize regulations and gradually develop a national payment gateway - promote e-commerce awareness campaigns and improve e-commerce education - accelerate the development of high-speed broadband network - improve the e-commerce logistics system |
| 15th | 15 June 2017 | • Improving Indonesia's logistics: - enhance the role of transportation insurance - reduce costs for logistic service providers - strengthen the Indonesia National Single Window (INSW) authority - reduce the number of prohibited and restricted goods |