The Indonesian House of Representatives officially received on Thursday a Government Regulation in Lieu of Law (Perppu) No. 1 of 2020 concerning State Financial Policy and Financial System Stability addressing the Covid-19 outbreak. Finance Minister, Sri Mulyani Indrawati, and Minister of Law and Human Rights, Yassona Laoly, submitted the Perppu to the Speaker of the House, Dr. (HC) Puan Maharani. At the event, the House Speaker was accompanied by two Deputy Speakers, M. Azis Syamsuddin and Rachmat Gobel. 

"We, the House and Budget Committee Leaders, have received Perppu Number 1 of 2020 submitted by the government. The House and the government held a consultation meeting to reach common ground on the best way to deal with the Covid-19 outbreak. We also discussed fiscal formulas and financial system policies in dealing with health, social, economic and other strategic aspects, "Maharani said at Nusantara III Building, Senayan, Jakarta, Thursday (2/4/2020), 

In the Plenary Session on March 30th 2020 ago, Maharani reminded the government to ensure that Perppu No. 1 of 2020 must accommodate programs that deal directly with social and economic resilience amid the Covid-19 outbreak. Health sector management, food and energy resilience, social protection, economic stimulus and financial support for MSMEs, and other strategic intervention programs were also on the list of the discussion. 

"The House also conveys a message to the government that the use of widening deficit must meet the need of state finances. In this way, fiscal risks in the future will always be put into consideration. The widening deficit will only be used in times of emergency and is not used in times when it is not needed." The Indonesian Democratic of struggle (PDI-P) politician added. 

Furthermore, the Central Java Constituency legislator explained that greater coordination between Bank Indonesia, the Deposit Insurance Corporation (LPS) and the Financial Services Authority (OJK) was required in maintaining financial system stability in accordance with the existing regulations. Hopefully, if the pandemic was over, it would not cause new problems in the state financial system. 

"The House through its Complementary Organs (AKD) will deliberate the Perppu based on the prevailing mechanisms. I am sure that our mutual cooperation in this difficult situation will have a good impact on all Indonesian people, "Added Maharani concluding her remarks. 

“President Joko Widodo signed the Perppu to respond to the spread of Covid-19 which has caused health and humanitarian crisis and has the potential to trigger economic and financial crises. It is the government’s fervent hope that the House can deliberate and approve it as soon as possible.” The Finance Minister asserted.  

"Mr. President has requested us to submit this bill to the Leaders of the House for deliberation and expresses his hope that the House can approve it as soon as possible," Indrawati said concluding her remarks. Also present in the meeting were Said Abdullah and Cucun Ahmad Syamsurijal, the Chair and Deputy Chair of Budget Committee of the House. (alw / es)