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The Covid-19 Picture by Indonesia Australia Business Council (IABC)

Country Focus | 8 May 2020
Illustration of business. Photo by Scott Graham on Unsplash/NOWJAKARTA

Indonesia Australia Business Council (IABC) Treasurer, Peter Fanning, produced a detailed report on significant events and regulations throughout the outbreak, especially those impacting business and legal.

Post PSBB Legal and Financial Framework for Action

31

MARCH

Government Regulation 21/2020 allowing regional governments to put in place large scale social restrictions (PSBB), with Ministry of Health approval.

1

APRIL

Minister of Finance Regulation 23/2020 (issued 23 March) granting personal income tax, import tax and VAT incentives (until September).

2

APRIL

MoL Regulation 11/2020 closing Indonesia’s borders. DG Immigration Circular No: IMI-GR.01.01-2325/2020

3

APRIL

Minister of Health Regulation 9/2020 setting out guidelines for putting in place large scale social restrictions.

7

APRIL

Indonesia raised USD 4.3 billion in USD bonds. The issue was underwritten by Citigroup, Deutsche Bank, HSBC and Standard Chartered. (It was oversubscribed on the Singapore Stock Exchange). (The assistance package announced by the President in March amounts to USD 24.8 billion).

9

APRIL

Governor of Jakarta Regulation 33/2020 imposing a lockdown on Jakarta.

10

APRIL

Governor of Jakarta Decree 380/2020 setting the lockdown period from 10 to 23 April.

11

APRIL

Coordinating Ministry for the Economy Circular announcing the opening of registration for First Stage of the Pre-employment Card.

13

APRIL

Presidential Decree 12/2020 stipulating Covid-19 is a Non-Natural National Disaster

Employment and Social

11

APRIL

(JP)

133.56 mill national workforce/ 7.05 mill unemployed
(Go-Jek is reported - JP 24 March - to have set aside USD 6 million to support its 1.7 million drivers across Indonesia. UI research states that drivers’ average income is IDR4.9 million per month).

15

APRIL

(JP)

2.8 million have lost jobs as at 13 April (half are on paid or unpaid leave) (Manpower & BPJS Manpower)/5.2 million expected to lose their jobs (Minister of Finance

15

APRIL

(JP)

900,000 non-Jakarta residents have returned home on mudik (Ministry of Transport). Another 1.3 million are expected to go. Another 1.3 million are civil servants who have been forbidden to go.

Government Aid

11

APRIL

(JP)

National government: IDR 405 trillion (USD 25.82 billion) to fund healthcare, social spending, business recovery.
IDR 110 trillion for social safety net; IDR 20 trillion for pre-employment card for 5.6 mill workers laid off; IDR 150 trillion for SME recovery.

11

APRIL

(JP)

Jakarta to distribute groceries to 1.52 million households weekly.

11

APRIL

(JP)

National government to pay IDR 600,000 per week to 1.2 million registered households in Jakarta from April to June.

13

APRIL

(JP)

Jakarta Governor stated (11 April) that aid will be given residents with IDs from other areas.

Business Experience

AustCham ASEAN, An annual survey of Australian business in ASEAN was just being completed when Covid-19 came along. The survey was immediately extended in time and content, but was closed to further input on 10 April. It will show results for ASEAN generally, and Indonesia (and each other ASEAN countries) in particular. The outcome will be distributed as soon as results are collated.

Here are the following select business experiences based on recent communications with 40 representatives of foreign business chambers through the International Business Chamber:

Airline: Massively impacted (loss of earnings of 20% to 50%, frequency and routes cut by 50%)

Business Consulting: Continuing well

Construction: Continuing well

Hospitality: Massively impacted

Legal Consulting: Continuing

Manufacturing: Reducing demand for some products

Mine product testing: Still operating, but reducing demand

Oil & Gas: Special impact on HSE issues in the offshore industry

Shipping: Continuing okay

Security Systems: continuing

Transport: Impacted (logistics down 25% to 50% in revenue, land transport down 75% to 100%, sea transport down 15%, public transport in Jakarta down 90%.

Access to Australia

If you are an Australian citizen, to travel to Australia you will need a health clearance and undertake 14 days quarantine in a hotel of the government’s choice on arrival. Australia has no intentions to evacuate anyone from Indonesia. Qantas and Jetstar are no longer flying from Indonesia. Garuda has very limited flights to Australia. You cannot transit through Indonesia. From 28 March, all overseas travel from Australia was banned.

Sources of Social Unrest

4

APRIL

Anti-Chinese and anti-foreign sentiment.

National Police Chief ordered cyber patrols to monitor online criticism of the President and gov’t officials re their handling of the crisis for possible offenses of defamation under Article 207 of the Criminal Code (up to 1.5 years in prison) spreading false information under Articles 14/15 (up to 10 years in prison) (JP 11/4/2020).

This is prepared informally for the use of IABC members and any others who wish to use it and is not intended to be legal advice or in any way be definitive.

Peter Fanning

IABC Treasurer