The House of Representatives of the Republic of Indonesia has passed a Government Regulation in Lieu of Law (Perppu) Number 1 of 2020 into a Law on the Financial Policy and Stability of Financial System for COVID-19 measure. The enactment of the Perppu is expected to provide a foundation for the government to make an extraordinary step in ensuring people’s health amid COVID-19 pandemic.  

In a Plenary Session held in Nusantara Building, Senayan, Jakarta, Tuesday (12/5/2020), the Speaker of the Indonesian House, Dr. (H.C.) Puan Maharani who presided over the meeting asked for approval from MPs who attended the meeting physically and virtually. “The brief viewpoints put forward by all House’s factions have indicated that 8 factions approve and 1 faction raised objections. Does this brief viewpoint represent one solid decision of all factions?” asked Maharani. The majority of the MPs, responding to her question, said yes.  

In a press conference after the Plenary Session, the Chair of the House’s Budget Committee, Said Abdullah said he was optimistic with the enactment of the Perppu Number 1 of 2020 into a Law. According to him, there were four points that make this Perppu very comprehensive and simultaneous, thus requiring supports for its implementation. “I guarantee that the Indonesian House will continue to monitor and give positive inputs to the government following the enactment of the Perppu,” said Abdullah in the press conference that was also attended by Dito Ganundito, the Chair of Commission XI of the House. 

“Under the Perppu, the government will be able to take 4 measures all at once. They are COVID-19 measures, social aids, economic stimulus for SMEs, and anticipative measure toward the stability of financial system. It means that the government is taking a comprehensive and immediate control. Therefore, I am sure that we will overcome this crisis soon,” Abdullah added.  

The politician of the Indonesian Democratic Party of Struggle added that the people have to believe in the measures the government is taking and the prediction of the economic recovery that will be achieved. “As the government has expressed its optimism in the Macroeconomic projection and Draft Fiscal Policy (KEM-PPKF), In Sha Allah (God willing) we will achieve the acceleration of economic recovery and reform in 2021,” Abdullah said.  

Meanwhile, Minister of Finance, Sri Mulyani Indrawati, in delivering the final view representing the government stated that a regulation governing the policy making and the implementation of the extraordinary measures taken by the government and the related institutions is required to face the coercive urgency as specified in Article 22 paragraph 1 of the 1945 Constitutions. 

“The purpose of issuing the Perppu among others is to provide a legal basis for the government in enacting a policy and taking extraordinary measures in state finance and financial sector in dealing with health, humanitarian, economic, and financial crisis due to the COVID-19 pandemic,” Indrawati concluded.