Finance Minister Sri Mulyani Indrawati conveyed that Indonesia made a series of efforts to restore the Indonesian economy due to the COVID-19 pandemic. He said economic growth would be pursued both on the demand side and on the supply side through more stringent reforms in Indonesia.
“Our reform focus is on economic recovery and structural reforms, especially to overcome the problem of the quality of human resources, as well as all infrastructure development and also to turn the economy into a more productive one,” he said at an international forum entitled Indonesia PPP Day. In addition, he explained, other efforts were made to invite more investors to come to Indonesia. Therefore, reforms were carried out in business and investment.
The existence of the Omnibus Law, continued Sri Mulyani, also created a new way of managing Indonesia’s economic policies. “The Omnibus Law simplifies investment procedures and also provides a clearer signal for doing business in Indonesia,” he said.
On the fiscal side, the government also carried out two very important reforms, namely the harmonization of tax regulations. It also reforms the value added tax of income tax. Second, improvements were also made to the fiscal side through the relationship between central and local government fiscal transfers, so that the benefits of government spending can be enjoyed by the public through better spending and increased local government taxation.