The Industrial Sector Will Get Stimulus Of Electricity Subsidies To Working Capital

Illustration. (Photo: Ministry of Industry)

JAKARTA - The government is preparing additional incentives or stimuli for the industrial sector affected by the COVID-19. The additional incentives include relief payments or electricity subsidies for the affected industries.

Minister of Industry Agus Gumiwang Kartasasmita said the industrial sector will get additional incentives in the form of eliminating the minimum cost for the use of 40 hours of electricity consumption.

This incentive, said Agus, also applies to premium industrial customers who use 233 hours of electricity consumption. This policy is proposed for the subscription period from 1 April to 31 December 2020.

"It is hoped that the industry can pay according to the amount of electricity used. The amount of stimulus needed is Rp1.85 trillion for nine months," he said, in a written statement received by VOI, in Jakarta, Thursday, June 11.

Furthermore, Agus explained, another incentive that will be obtained is a delay in payment of 50 percent of the electricity bill for six months, from April to September 2020 with a guarantee of installments in the form of postponed current accounts for 12 months. Then it is also proposed to write off the late payment penalty.

According to Agus, this strategic step was taken to revive the enthusiasm of business actors. So that it can encourage the wheels of the national economy to keep going, but by paying attention to health protocols.

Regarding the electricity incentive, Agus admitted that he had sent a circular (SE) to PT Perusahaan Listrik Negara (Persero) or PLN.

Elimination of VAT for Export Raw Materials

According to Agus, the government is also reviewing incentives in the form of VAT elimination for local raw materials for export destinations, postponement of VAT payments for 90 days without fines, and temporary exemption of Article 25 PPh installments.

"The government is determined to continue to maintain performance and support the productivity of industry players, one of which is through the provision of tax incentives," he explained.

Agus reasoned that the productivity of these industry players is also to ensure the fulfillment of the people's needs in the country.

"Providing additional tax breaks for the industrial sector will complement other incentives previously released by the government," he said.

As is known, the incentives for industrial players that have been launched include the exemption of Article 22 PPh on imports, 30 percent installments of Article 25 PPh, accelerated VAT refunds, as well as additional incentives for companies receiving bonded zone facilities and / or ease of import for export destinations for handling the COVID pandemic. -19.

Credit Restructuring and Working Capital

Agus said that his party had also proposed a credit restructuring and working capital stimulus. This incentive will be given with a number of criteria. Among other things, a track record of taxes and credit installments, having good business prospects, absorbing workers, being severely affected by COVID-19, and maximizing the use of domestic raw materials.

Next is the stimulus related to the Decree of the Minister of Energy and Mineral Resources Number 8 of 2020 concerning Determination of Users and Prices for Certain Natural Gas in the Industrial Sector, the points proposed are the elimination of the minimum payment per contract, and payment according to the amount of usage.

"With these efforts, it is hoped that the industry can continue to grow and the national economy can be maintained on a positive trend," he said.

In addition, the government seeks to encourage domestic market consumption by increasing utilization through the implementation of TKDN in ministries and institutions as well as BUMN. In addition, increased utilization through increased domestic demand.

On the same occasion, Chairman of the Indonesian Employers' Association (Apindo) Hariyadi Sukamdani said that in order to recover, the business world needs a working capital stimulus.

Furthermore, Hariyadi said that the stimulus would at least be in the form of an interest subsidy to adjust the benchmark interest rate of Bank Indonesia (BI), which is currently set at 4.5 percent for a year.

"This stimulus needs to be given to all business sectors," said Hariyadi.

Based on Apindo's calculations, the textile and textile product (TPT) industry sector requires a budget of IDR 283.1 trillion, the food and beverage industry of IDR 200 trillion, the footwear industry of IDR 99 trillion, as well as the electronics industry and household electrical appliances are projected to reach IDR 407 billion.