Indonesia to announce new economic package, focus on SMEs, logistic, REITS and pharmaceutical

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JAKARTA (TheInsiderStories) – Coordinating Minister for Economic Affairs Darmin Nasution said the government will announce an eleventh policy package which will focus on postal savings, small medium enterprises (SMEs) export financing, logistic, Real Estate Investment Trust (REITS) and pharmaceutical sectors.

“We must first report to the President. The new policies will be about postal savings,  logistics and export financing, ” Nasution said.

The government discusses eight economic issues in the financial and the logistics sectors that will be included in the eleventh (XI) or twelveth (XII) new economic packages. The upcoming policy package is primarily targeting the micro, small and medium enterprises as well as the villagers.

Deputy for Coordination of Commerce and Industry at the Coordinating Ministry for Economic Affairs Edy Putra Irawady said that the policies will include postal savings, export financing for SMEs through Indonesia Eximbank, encouraging the pharmaceutical industry and medical devices, single risk management for logistics to suppress the dwelling time from currently around 4.7 days on average nationwide, Regulated Agent in the Transportation Minsitry, port management of fish (including cold strorage) and tourism.

“From about seven to eight issues, I am more optimistic at least three big policies such as postal savings, single risk management, trade finance for SMEs and pharmaceutical are likely to be included in the Eleventh (XI) policy package,” he said.

As for postal savings, the government will launch postal savings which will allow the public to save in postal offices operated by state owned PT Pos Indonesia. In the past, before banks became popular, the society was accustomed to save money at PT Pos Indonesia. This program will be reactivated.

Chief Executive of the Financial Services Authority (FSA) for Non Bank Financial Industry Firdaus Firdaus Djaelani said that this year the government will bear the postal savings to take advantage of PT Pos Indonesia through 4,000 bank branch offices in the district and village offices.

Funds collected from the public will be used to buy the government bonds or state budget. In early stage, the postal savings program will be carried out on the island of Java. Currently, the government regulations related to the business of PT Pos Indonesia is being finalized, and will be linked POJK postal savings.

“We will empower the postman to approach the community, in order to turn on the product or the postal insurance savings. We are still coordinating with the Minister for Economy, Finance Minister, Minister of State Enterprises and the Minister of Communication and Information, as well as to encourage financial inclusion. If the Japanese postal savings market share of 20%,” he said.

For single logistic risk management, the government is intended to cut the time of loading and unloading of goods from the national average of 4.7 days to less than 3 days. The related ministry will cut the process of loading and unloading of goods at the port as well as implement online system, custom and post clearance through inter-sectoral INSW (Indonesia National Single Windows).

As for export financing for SMEs, some of the funds will also be allocated to finance People’s Credit Scheme (KUR) L/C exports of SMEs which will be implemented through the Indonesian Export Financing Agency (LPEI).

For the pharmaceutical industry and medical supplies, the government will guarantee market access to manufacturers of medicinal raw materials through BPJS program. Manufacturers are expected to market their products around 50-60% for the domestic market. The facilities that can be given to producers (BBO) will include tax holiday/tax allowance and acceleration of licensing for medicines from the Ministry of Health and BPOM.

Meanwhile, issues related with Regulated Agent (RA) at the Ministry of transportation and ease of doing business seemed not to be included in the next policy package.

As is known, the Ministry of Transportation has issued a decree of the Minister of Transportation No. 32/2015 related to cargo and mail inspection aircraft. The regulations is a revision of Regulation No. 152/2012 DGCA, which gave birth to a business on regulated agent (RA) to inspect air cargo and air mail.  (*)

 

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Source: The Insiderstories
Indonesia to announce new economic package, focus on SMEs, logistic, REITS and pharmaceutical

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