Indonesia to Release 15th Economic Policy Package Soon
The government of Indonesia will soon release the 15th economic policy package in an effort to maintain the "structural reform momentum" and encourage investment into Indonesia as well as macroeconomic growth. Based on the words of Indonesian Chief Economics Minister Darmin Nasution, the 15th policy package will touch on subjects related to deregulation, (improvement of the) investment climate, infrastructure, medical equipment, as well as the textile and agri industries.
Minister Darmin Nasution said the government wants to become self-sufficient in the pharmaceutical and medical equipment sectors within the foreseeable future. Currently, approximately 90 percent of medical equipment and raw materials for the country's pharmaceutical industry is imported from abroad. In the 11th economic policy package, released on 29 March 2016, the government already called for the design of a roadmap for the pharmaceutical industry. However, the new (15th) policy package will provide more details.
Akhmad Akbar Susamto, economist at Core Indonesia, commented on the new economic policy package, saying all packages are a step in the right direction. However, the full implementation of these packages remains a difficult matter, particularly due to the high degree of bureaucracy and weak quality of human resources at the (local) government (the "what's in it for me - mentality" still exists among government officials and staff). Therefore, efforts to ease red tape by cutting the number of permits that are required for a specific investment purpose (hence speeding up the process) have not all been fruitful yet.
On 10 November 2016 the government had already released the 14th economic policy package. This edition focuses on a roadmap for the nation's e-commerce industry aiming to turn Indonesia into a digitally focused economy. The e-commerce sector of Indonesia contains great potential due to rapidly rising Internet and smartphone penetration. Currently, there are 93.4 million 93.4 million Internet users and 71 million smartphone users in Indonesia. However, given that the total population numbers more than 255 million people, there is still plenty of room for growth.
The development of the e-commerce industry will make the Indonesian economy more efficient and encourage creativity and innovation.
Economic Stimulus Packages of the Indonesian Government:
| Package | Unveiled | Main Points |
| 1st | 9 September 2015 |
• Boost industrial competitiveness through deregulation • Curtail red tape • Enhance law enforcement & business certainty |
| 2nd | 30 September 2015 |
• Interest rate tax cuts for exporters • Speed up investment licensing for investment in industrial estates • Relaxation import taxes on capital goods in industrial estates & aviation |
| 3rd | 7 October 2015 |
• Cut energy tariffs for labor-intensive industries |
| 4th | 15 October 2015 |
• Fixed formula to determine increases in labor wages • Soft micro loans for >30 small & medium, export-oriented, labor-intensive businesses |
| 5th | 22 October 2015 |
• Tax incentive for asset revaluation • Scrap double taxation on real estate investment trusts • Deregulation in Islamic banking |
| 6th | 5 November 2015 |
• Tax incentives for investment in special economic zones |
| 7th | 4 December 2015 |
• Waive income tax for workers in the nation's labor-intensive industries • Free leasehold certificates for street vendors operating in 34 state-owned designated areas |
| 8th | 21 December 2015 |
• Scrap income tax for 21 categories of airplane spare parts • Incentives for the development of oil refineries by the private sector • One-map policy to harmonize the utilization of land |
| 9th | 27 January 2016 |
• Single billing system for port services conducted by SOEs • Integrate National Single Window system with 'inaportnet' system • Mandatory use of Indonesian rupiah for payments related to transportation activities • Remove price difference between private commercial and state postal services |
| 10th | 11 February 2016 |
• Removing foreign ownership cap on 35 businesses • Protecting small & medium enterprises as well as cooperatives |
| 11th | 29 March 2016 |
• Lower tax rate on property acquired by local real estate investment trusts • Harmonization of customs checks at ports (to curtail dwell time) • Government subsidizes loans for export-oriented small & medium enterprises • Roadmap for the pharmaceutical industry |
| 12th | 28 April 2016 |
• Enhancing the ease of doing business in Indonesia by cutting procedures, permits and costs |
| 13th | 24 August 2016 |
• Deregulation for residential property projects for low-income families |
| 14th | 10 November 2016 |
• Creating a roadmap for the nation's e-commerce industry: - easing and widening access to funding - offer tax incentives - harmonize regulations and gradually develop a national payment gateway - promote e-commerce awareness campaigns and improve e-commerce education - accelerate the development of high-speed broadband network - improve the e-commerce logistics system |
| 15th | ? |