Furthermore, it was announced that Indonesian street vendors and small businesses (that operate in designated areas) can obtain a leasehold certificate through which they can secure a cheap micro loan. Currently, most of these small businesses belong to the informal sector and due to the lack of assets they cannot secure a loan. With this certificate in hand they will be able to obtain a government-backed loan to expand their business.

Electricity tariffs (for industries) are to be cut by 30 percent between 11 pm and 8 am. Moreover, those companies that are in financial trouble will be allowed to delay the payment of up to 40 percent of its electricity bills until the next year, while discounts are offered in case the company agrees not to layoff employees.

Last month, the first two installments of the package were unveiled. Generally, the package aims to boost trade and investment in Indonesia, and to make the country more attractive for capital inflows. Indonesia's economic growth has slowed to a six-year low of 4.67 percent (y/y) in the second quarter of 2015. Moreover, the country was plagued by severe capital outflows in recent weeks as markets believed that the Federal Reserve was about to raise US interest rates (a situation that changed dramatically over the past three trading days).

Further Reading:

Economic Policy Package Indonesia: What are the Stimulus Measures?
Second Installment Economic Policy Package Indonesia
Economic Policy Package Indonesia: Bonded Zones & Import Tax Cut
Policy Package Bank Indonesia to Safeguard Rupiah Stability & Enhance Management

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