10 July, 2020

Indonesia plans economic policy moves to face global uncertainties

JAKARTA (Reuters) – Indonesia will announce economic policy changes in coming months to help its industries contend with rising global uncertainty and the indirect impact of trade tensions between China additionally, the United States, officials said.

Details with regards to the moves, to get taken at this time Indonesia is hoping to stabilize the delicate rupiah lower its current account deficit, weren’t released.

Industry Minister Airlangga Hartarto said government entities is preparing measures to better costs climate.

According with an official statement late on Monday, Hartarto said the federal government will "optimize the use of fiscal tools as import and export taxes, as well as harmonizing import taxes, in order that industries will have their competitive edge and are generally capable to export."

He said the govt would also give more incentives to exports, including by subsidizing timber legality verification for medium and small furniture makers, giving them certificates for foreign buyers that ensure timber products are not sourced from illegal logging.

Companies would also be most likely to lower the by using imported materials in their production, this is a minister said.

Bank Indonesia Governor Perry Warjiyo, in the interview with Reuters on Monday, said authorities are preparing policies aimed toward reducing the current account deficit.

Earlier on Monday, Warjiyo warned that rising U.S.-China tensions could hurt other economies besides through trade, and financial channels as the could heighten investors' risk aversion.