AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
On 9 September 2015, the Indonesian president Joko Widodo announced in a televised broadcast a package of reforms which amended or repealed 134 regulations spanning 17 ministries. The changes would be gradually implemented starting 15 September 2015 until the end of the year. Most of them would target deregulation, in order to revoke overlapping regulations, and streamline "national strategic projects".
Foreign currency accounts for foreigners
One of the included regulation amendments would ease the conditions for foreigners to open foreign currency accounts in Indonesia.
State aid for fishermen and shipbuilding industry
The president also promised to increase Indonesia's fuel-subsidies for fishermen and to provide more state aid to the struggling shipbuilding industry.
Introduction of the National Interest Account
Another part of the package was the implementation of a National Interest Account within the Indonesian Export-Financing Agency LPEI. The goal of this fund is to finance "commercially non-viable exports, for the national exports interest" (press release by Finance Ministry, 10.09.2015).
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.
This measure is classified as amber and not implemented, as it is the announcement of a vast number of policy changes to occur in the coming months. The actual changes can be found in the Related Measures section.
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