log in
All Articles | Back

Member Articles


Country-by-Country Guide: Government Measures Taken in Response to COVID-19 

by Maria Sagrado, Maharanny Hadrianto, Gaudencia Vania

Published: April, 2020

Submission: April, 2020

 



Please find a summary of regulations related to COVID-19 in more than 32 countries (including Indonesia prepared by our Firm) as per 22 April 2020 below.


Economic Measures


Loan Facilities: The Indonesian Financial Services Authority (OJK) issued Regulation No. 11/POJK.03/2020 (March 16, 2020), which relaxes the loan quality assessment and restructuring requirements for borrowers affected by COVID-19 until March 31, 2021. Loans of up to IDR 10 billion are now assessed only according to a borrower’s timeliness in paying the relevant principal amount, interest or margin/profit sharing/ujrah (“fee” under Sharia law).


Tax Exemptions/Refunds: On March 21, 2020, the Minister of Finance issued Regulation No. 23/PMK.03/2020 on Tax Incentives for Taxpayers who are Affected by the Outbreak of the Coronavirus Disease, effective March 23, 2020, which provides (i) an exemption from Income Tax under Article 21; (ii) an exemption from Income Tax under Article 22 on imports; (iii) a 30% reduction in Income Tax instalments under Article 25; and (iv) a paid In-Advance Value Added Tax Refund of up to IDR 5 billion.


On March 31, 2020, the Government issued Regulation in Lieu of Law No. 1 of 2020 which reduces corporate income tax from 25% to 22% for the 2020 and 2021 Tax Years, and further to 20% for the 2022 Tax Year. Local corporate taxpayers which are publicly-listed companies with at least 40% of shares traded on the stock exchange, subject to certain requirements, may be granted a further 3% reduction for the respective Tax Years.


Labor & Employment Measures


Employee Wage Protection: On March 17, 2020, the Minister of Manpower issued Circular Letter No. M/3/HK.04/III/2020, which requires Governors to ensure wage protection for employees with four conditions.


Health & Safety Measures


Lockdown: On March 31, 2020, the Government issued Government Regulation No. 21 of 2020 on Large Scale Social Restrictions (“LSSR”) in Order to Accelerate the Handling of COVID-19.


Quarantine: On March 16, 2020, the MOH issued Circular Letter HK.02.01/MENKES/202/2020 on the Protocol for Self-Isolation in the Handling of COVID-19, which requires all central and regional government leaders to instruct all units in their sectors to apply the self-isolation protocol.


Export/Import Measures


Export Restrictions: The Minister of Trade issued Regulation No. 23 of 2020 (as amended), effective March 17, 2020, which temporarily restricts exports of antiseptics, mask raw materials, personal self-protection equipment and masks unti June 30, 2020.


Import Facilitation of Medical and Health Equipment: The Minister of Trade issued Regulation No. 28 of 2020 which came into force on March 23, 2020, to relax import requirements for certain medical and health related products such as antiseptic products, surgical masks, infra-red thermometers and medical personal protective clothing.


 


Please read the complete advisory for the complete measures.


 


Footnotes:

M&T Advisory is an email publication prepared by the Indonesian law firm, Makarim & Taira S. It is only intended to inform generally on the topics covered and should not be treated as a legal advice or relied upon when making investment or business decisions. Should you have any questions on any matter contained in M&T Advisory, or other comments generally, please contact your usual M&T contact or [email protected].


Contacts:


Lina Amran: [email protected]
Maria H. Sagrado: [email protected]
Maharanny Hadrianto: [email protected]
Gaudencia Vania: [email protected]



Link to article

 

MEMBER COMMENTS

 

 

WSG Member: Please login to add your comment.

    Disclaimer

WSG's members are independent firms and are not affiliated in the joint practice of professional services. Each member exercises its own individual judgments on all client matters.

HOME | SITE MAP | GLANCE | PRIVACY POLICY | DISCLAIMER |  © World Services Group, 2020