Rp10.3 Trillion Readied as Buffer Against Impacts of Covid-19

KOMPAS/HERU SRI KUMORO

President Joko “Jokowi” Widodo and Vice President Ma\'ruf Amin chair a meeting with some Cabinet ministers and heads of government institutions at the Presidential Office in Jakarta on Tuesday (25/2/2020). The meeting was called to discuss the impact of the recent coronavirus outbreak on the Indonesian economy. The President asked for fiscal measures to boost the economy, especially tourism, and suggested to hold more conferences in tourist areas that normally receive many tourists from China.

JAKARTA, KOMPAS — President Joko “Jokowi” Widodo has issued a fiscal policy package of incentives worth Rp 10.3 trillion (US$757.35 million) to cope with the economic impacts of the coronavirus outbreak. The fund will be taken from the reserve funds allocated in the 2020 State Budget. With this package, various incentives will be provided.

As part of the package, the government will increase the Sembako Card assistance (food aid for the poor) from Rp 150,000 to Rp 200,000 per family and offer discounted tourism packages, as well as incentives for airlines and travel agents to attract more domestic and foreign tourists.

There will be also tax exemptions for hotels and restaurants, compensation for the regional governments of the 10 “super priority” tourist destinations, as well as an increase in subsidized housing mortgages.

"The total budget of Rp 10.3 trillion will derive from the 2020 State Budget," Finance Minister Sri Mulyani Indrawati said on Tuesday (25/2/2020) after a limited meeting at the Presidential Office in Jakarta.

KOMPAS/BAHANA PATRIA GUPTA

An officer sets up a treatment room on the KRI Dr. Soeharso ship at Koarmada II Pier in Surabaya, East Java, on Thursday (20/2/2020). The government has prepared the KRI Dr. Soeharso as an option to pick up 74 Indonesian citizens working aboard the Diamond Princess cruise ship that is currently quarantined in Japan. Four of the 78 Indonesians on the cruise liner have tested positive for Covid-19. The Indonesian Navy vessel with a crew of 153 people is ready to be dispatched at any time.

According to Sri Mulyani, the incentives were necessary to safeguard Indonesia\'s economy amid the spread of the novel coronavirus, which had paralyzed the economic activities of China, the second largest economy in the world. "We are trying to reduce [the virus’] negative impact, which is likely to drag down our economic growth from 5.02 percent to 4.7 percent," she said.

In his opening remarks for the limited meeting, President Jokowi said earlier that the government would take swift steps to boost the economic sectors affected by the outbreak.

Evacuation of Indonesians

The secretary of the Health Ministry’s disease prevention and control directorate general, Achmad Yurianto, said that the Indonesian Navy’s Dr. Soeharso Hospital Ship was en route to evacuate at least 188 Indonesians (WNI) among the crew of the World Dream cruise ship.

The Indonesian citizens would be transferred to the Dr. Soeharso at 10:00 a.m. on Wednesday (26/2), and were expected to arrive at the quarantine site on Sebaru Kecil Island, Thousand Islands regency, at 3:00 a.m. on Friday.

The observation period has been adjusted to double the 14 days.

The government is preparing a comprehensive examination for the Indonesians quarantined on Sebaru Kecil, which has been equipped with a number of facilities. "The observation period has been adjusted to double the 14 days," Achmad said.

Meanwhile, plans to evacuate Indonesian crewmen from the Diamond Princess cruise ship in Yokohama, Japan, is still awaiting the President’s decision. Of the 78 Indonesian crewmen on board, nine have tested positive for the Covid-19 virus.

AP PHOTO/LUCA BRUNO

People wearing facemasks sit in front of the La Scala opera house in Milan, Italy, on Monday (24/2/2020). Italy has been scrambling to check the spread of Europe\'s first major outbreak of the new viral disease amid a rapidly rising number of infections, calling off the popular Venice Carnival, scrapping major league soccer matches in the stricken area and shuttering theaters, including Milan\'s legendary La Scala.

Widespread

The Covid-19 outbreak has become more widespread, from many parts of East Asia, Southeast Asia, the Middle East and to several confirmed cases in Eastern Europe.

Croatian Prime Minister Andrej Plenkovic announced on Tuesday (25/2) that one of its nationals had tested positive for Covid-19.

The man was being treated at a hospital in the country’s capital, Zagreb. Croatian Health Minister Vili Beros said the man had contracted the Covid-19 virus while in Milan, one of the centers of the localized outbreak in Italy.

Indonesian Students Association of Milan chairman Andrew Wibawa said that the area where they lived was conducive, even though a fifth coronavirus patient died on Monday. However, the local residents, including 110 Indonesian students, were having difficulty obtaining masks.

"We hope that the Indonesian Embassy in Rome can help," he said. (REUTERS/AP/AFP/HAR/TAN/COK/DIT/TRA/SAM/MHD )