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Govt to launch 4 new economic recovery programs in 2022

Tempo - December 31, 2021

Fajar Pebrianto, Jakarta – Coordinating Minister for the Economy Airlangga Hartarto said the government is set to roll out four new programs of the National Economic Recovery (PEN) next year, starting from the micro-credit program or KUR subsidies to cash aids for street vendors.

"The President has approved several new programs for the front-loaded spending in early 2022," Airlangga said at a press conference after the cabinet meeting, Thursday, Dec. 30.

The first program is a KUR subsidy at 3 percent from January to June 2022. The budget needed will reach Rp5.64 trillion.

The second program is the expansion of the cash assistance program for street vendors. The government will also increase the recipient target for the extreme poor (PME) in coastal areas in 212 regencies/cities.

"The technical matters will be discussed with the Finance Ministry, but will be pushed [to complete] in the first quarter, in line with the Susenas (National Social and Economic Survey) in April," he added.

The third program is the expansion of the government-borne value-added tax incentive or VAT DTP until June 2022, from initially ended in December 2021. The fourth program is the luxury goods sales tax (PPnBM) for automotive.

Airlangga Hartarto also said the proposal for people's vehicles submitted by Industry Minister Agus Gumiwang Kartasasmita to Finance Minister Sri Mulyani Indrawati is needed to be discussed and studied further. "This has not been approved yet," he said.

Source: https://en.tempo.co/read/1545062/govt-to-launch-4-new-economic-recovery-programs-in-202