Helping Entrepreneurs In The Middle Of COVID-19, The Government Will Issue A Recovery Bond

Coordinating Ministry for Economic Affairs Building (Angga Nugraha / VOI)

JAKARTA - The government continues to seek various alternatives to support the business world in increasing its financial liquidity amid the outbreak of the corona virus or COVID-19. Moreover, due to COVID-19, Indonesia's economy is experiencing slow growth.

Secretary of the Coordinating Ministry for the Economy, Susiwijono Moegiarso, said the alternative being planned was the issuance of a new type of debt security by the government called a recovery bond.

To note, recovery bonds are government debt securities in rupiah that can be purchased by Bank Indonesia and other private parties. Such as importers, exporters and so on.

"The funds from the sale of these bonds will be held by the government and then distributed to the entire business world through special credit," said Susiwijono, in a joint video conference with BNPB, at the BNPB office, Jakarta, Thursday, March 26.

Susiwijono explained that the government would make this special credit scheme as light as possible. So that entrepreneurs can revive their business.

However, Susiwijono explained, there are two conditions for companies that want to take advantage of the special credit scheme prepared by the government. First, companies are not allowed to lay off their workers at all.

Second, even if the company is forced to terminate the employment relationship (PHK), the company must retain 90 percent of the number of workers without making salary deductions.

On the other hand, Susi said, to issue a recovery bond, a regulatory change is needed as a legal basis. The regulatory changes are planned to be carried out through a Government Regulation in Lieu of a Law (Perppu) is currently being discussed by the government.

"We are targeting Friday friends at the Ministry of Finance to complete the Perppu as the basis for issuing this recovery bond," he said.