Jokowi Prepares 8 Strategies to Curb Rupiah Correction
13 March 2015 13:42 WIB
TEMPO.CO, Jakarta – The rupiah is currently being traded for more than Rp13,000 per US dollar, far above the 2015 State Budget assumption of Rp11,900 per dollar and the 2015 Amended State Budget assumption of Rp12,500 per US dollar.
The alarming rate of depreciation forces the government to take safety measures. President Joko Widodo has prepared a policy package of eight tactics to stabilize the rupiah, in a bid to prevent it from being corrected further.
The strategies are:
1. The provision of tax allowances.
2. Collaborating with the Indonesian National Shipowners Association (INSA) to overcome deficits in the shipping sector by designing a fairer tax system for shipowners.
3. Improving the financial balance by urging SOEs to buy reinsurance.
4. The Ministry of Finance issued a regulation on temporary dumping and safeguarding duties for imported products with dumping indications.
5. Tax allowance for companies with 30 percent or more products destined for export markets.
6. Issuing government regulations to stop imposing VATs to shipyards in a bid to reduce shipping imports.
7. Increase biofuel components to reduce the import of oil and fuel oil.
8. Giving tax incentives to foreign companies that do not send annual dividends of 100 percent to parent companies in their home countries.
AGUSSUP | TRI ARTINING PUTRI
