JAKARTA - The House of Representatives (DPR) officially passed Government Regulation in Lieu of Law (Perppu) number 1 of 2020 into Law (UU). In fact, the presence of this Perppu has received public criticism, and several community institutions have also submitted a judicial review to the Constitutional Court (MK).

The Perppu, which has now become a law, regulates state financial policies and financial system stability for handling the corona virus or COVID-19, in order to face threats that endanger the national economy and financial system stability.

Chairman of the DPR Puan Maharani in a plenary meeting asked all members of the DPR who were present whether they could approve Perppu No.1 / 2020 into law.

"Is Perppu Number 1 of 2020 concerning State Financial Policy and Financial System Stability for Handling COVID-19 and / or in the Context of Facing Threats That Endanger the National Economy and / or Financial System Stability Can be approved into law? Agree ?," said Puan, in plenary meeting, at the Parliament Complex, Senayan, Jakarta, Tuesday, May 12.

"Agreed," answered all the members.

Of the 9 factions in the Parliament, only one faction, namely the PKS Faction, rejected the Perppu No.1/2020 into law.

Responding to this, Minister of Finance Sri Mulyani expressed her gratitude for the approval and views of the factions towards this Perppu. According to him, this is an important note for the government and will later be used as a constructive basis for implementing the regulation.

In addition, Sri Mulyani admitted that she was sure that this Perppu was one of the right instruments to ward off the further negative impacts of the pandemic.

According to Sri Mulyani, the government will continue to be alert in responding and improving existing policies in dealing with COVID-19.

"This COVID-19 continues. We will continue to improve various policy responses so that people from the health, social and economic side can get protection," said Sri.

The government, said Sri, will implement the national economic recovery program (PEN) this year and next year. According to him, this runs parallel with handling the impact of COVID-19 on the health, social and economic sectors.

Minister of Finance, Sri Mulyani. (Irfan Meidianto / VOI)

Furthermore, Sri said, thus macroeconomic policy and fiscal policy direction in 2021 would focus on efforts for economic recovery. As well as reform efforts to address the fundamental problems of the medium-long term economy.

"The focus of development is on industrial recovery, tourism and investment, reform of the national health system and social safety nets, and reform of the disaster resilience system. The focus of this development is expected to be able to revive the national economic engine which is in its momentum of growth," he explained.

Perppu 1/2020 Cannot Save the Economy

As is known, after it was announced that Indonesia had positive cases in early March, the government immediately responded with various policies. One of them is to prepare for handling the financial sector if the impact of this virus continues by issuing Perppu Number 1 of 2020 concerning State Financial Policy and Financial System Stability for Handling the COVID-19 Pandemic.

However, Senior Economist Faisal Basri assessed that the Perppu did not reflect the handling of COVID-19 in the country and was ineffective. This is because the Perppu was issued not to focus on handling COVID-19, but rather a Perppu on the financial sector.

"The Perppu that comes out is the Perppu on the financial sector, the handling of the pandemic is unclear," he said, in a virtual discussion entitled 'Economic Costs of Facing the COVID-19 Crisis', Friday, April 24.

Faisal did not deny that the COVID-19 pandemic was targeting all sectors including the real sector of the Indonesian economy. However, this Perppu does not help with the handling of COVID-19, should the government focus on handling this virus, what should be issued is the Perppu for handling the pandemic.

"There is no doubt if the real sector is hit. So again my point is that we can plan as well as possible, prepare as well as possible, if the Perppu that comes out is about handling the pandemic," he said.

Sued to MK

Perppu No.1 / 2020 was sued at the Constitutional Court (MK). The judicial review to the Constitutional Court, among others, was submitted by the former Chairman of the Indonesian People's Consultative Assembly Amien Rais; former Chairman of the PP Muhammadiyah Din Syamsuddin; and professor of economics at the University of Indonesia, Sri Edi Swasono. The Indonesian Anti-Corruption Society is taking the same steps.

One of the objects being sued by the plaintiffs was Article 27 paragraph (1) which was judged to have the potential to lead to criminal acts of corruption and Article 27 paragraph (2) and (3). Meanwhile, Article 27 paragraph (2) and (3) regulates the immunity or legal immunity of officials implementing the Perppu.

However, the lawsuit brought by various figures to the Constitutional Court threatened to be unacceptable. This is because the DPR has approved the Perppu to become a law.

For your information, when the Law on the Establishment of the Perppu has been enacted, then the case for examining the Perppu loses the object of the case, therefore the Constitutional Court has to decide in an unacceptable manner.

Although the lawsuit against Perppu No.1 / 2020, will automatically not be accepted by the Constitutional Court, the plaintiffs can again file a lawsuit with a new object, namely Law No.1 of 2020.


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