Apindo: A Number Of COVID-19 Stimulus Ineffective And Countries Potentially Losing Foreign Exchange IDR 59 Trillion

Chairman of Apindo Hariyadi Sukamdani. (Mery Handayani / VOI)

JAKARTA - The Indonesian Employers' Association (Apindo) assesses that a number of stimulus policies issued by the government in the midst of the corona virus pandemic or COVID-19 have not been effective in helping the community or entrepreneurs. In addition, the country also has the potential to lose large foreign exchange due to this pandemic.

The policies referred to by Apindo include the relaxation of PPh21, PPh22, PPh25 and the Pre-Employment Card program.

Chairperson of Apindo Hariyadi Sukamdani said that the PPh21 relaxation was considered ineffective because the limit was for workers with a salary of IDR 200 million per year or IDR 16.67 million per month. Meanwhile, the reality is that currently the majority of workers receive less than normal wages.

"The average in the tourism sector is arguably below 50 percent, so this is useless because the income is already low," he said, in an online discussion with the theme 'COVID-19 and Economic Stimulus', Wednesday, May 13.

Hariyadi assessed that the government wrote the Rp. 70.1 trillion budget in fact only on paper. This is because, in fact, the workers do not feel the benefits especially.

Then, continued Hariyadi, the relaxation of import PPh22 was also ineffective. This is because of the import tax, if the company imports what it should, the income tax calculation is paid behind. However, in this policy, it is required to be paid in advance.

"Now this is what is being freed. Currently, imports are relatively small, not as usual and have fallen relatively sharply," he explained.

Not only that, according to Hariyadi, PPh25 relaxation is the same. This is because the employer asked to be exempted from installments. Because it has been confirmed that the company has suffered losses due to the COVID-19 pandemic.

"So, if you lose in the end you don't pay PPh25, because the tax rules are required to pay installments according to last year's performance. So later, if we pay 70 percent at the end, we will definitely pay first. "he said.

Furthermore, Hariyadi said, the Pre-Work Card program is basically competency-based and is currently being added as a semi-social safety net. However, in reality it doesn't quite fit. Because, in the midst of the current conditions, it is not the competency needed but direct cash assistance (BLT).

"This is also a problem because he is open registration, everyone can register. In the end, those who are affected do not get it, and this is a lot of complaints from our workers, in the end they don't get it," he said.

Effective Policy

However, according to Hariyadi, there are several effective relaxation felt by entrepreneurs. One of them is the credit restructuring set out in the Financial Services Authority Regulation (POJK) 11/2020.

Even though it is effective, said Hariyadi, there are still obstacles that occur in several financial institutions related to this policy. Due to limited liquidity and a protracted process.

"What is effective in our opinion is relaxation in the OJK, frankly it provides concessions for debtors to be able to schedule their debts to financial institutions," he said.

In addition, according to Hariyadi, Circular (SE) number 4 and 7 of 2020 issued by the Minister of Industry has also helped industries working on people's basic needs to continue operating.

"Then the Minister of Industry SE which allows the industry to carry out its operations by submitting an operation and mobility permit through online," he explained.

Furthermore, Hariyadi revealed, SE Minister of Manpower no. M / 6 / HI.00.01 / V / 2020 regarding the holiday allowance is also felt by employers to be very helpful in being able to negotiate with their workers.

"If the company still has funds, then it can pay partially and partially in installments until the end of the year, but if the company does not have any funds, the payment can be postponed at the end of the year," he said.

Potential Loss of Foreign Exchange Reaches IDR 59 Trillion

Apindo also noted that the potential for foreign exchange loss amid the COVID-19 pandemic has reached 4 billion US dollars, equivalent to Rp59 trillion. Hariyadi explained, this calculation starts from the beginning of the spread of this virus in the country until the implementation of Large-Scale Social Restrictions (PSBB).

Hariyadi said that during the pandemic, there were approximately 2,000 hotels and 8,000 restaurants closed. The potential loss of revenue from January to April 2020 is estimated at IDR 30 trillion for the hotel sector and IDR 40 trillion for the restaurant sector.

"The potential foreign exchange lost from January to April 2020 is US $ 4 billion or around Rp. 59 trillion," he said.

According to Hariyadi, significant losses also occurred to airlines. Based on Apindo's records, industrial losses have reached US $ 812 million. Meanwhile, the loss for tour operators reached IDR 4 trillion.

"Currently 90 percent of workers in the tourism sector are laid off. So, those who are laid off are very insignificant. Because if they are laid off, they must be given severance pay and the number of workers in the tourism sector is now 13 million people," he explained.