The Indonesian government has announced a reform package drawn up in coordination with the central bank, the Financial Services Authority and the Minister Coordinator for the Economy. Its aim is to boost domestic consumption and revitalise the economy.
The first tranche of measures includes the adoption of measures to increase certainty in economic activity and in the law, for economic operators and foreign investors. Work has also begun on a number of major projects in the energy and transport sectors, boosting state spending in the infrastructure sector.
The second tranche of measures addresses problems relating to the streamlining of bureaucracy and attracting inward investment and foreign capital.
With the third tranche of reforms, the price of diesel will be reduced by about 3 percentage points to help the country’s fishing industry. At the same time, a programme to convert fishing boats from diesel to liquefied petroleum gas will be launched to significantly reduce running costs. Cuts in electricity and gas prices for industrial use are also planned.
Lastly, in a fourth package of measures the government intends to address the issues of employment and minimum wages.
These new rules will also make it easier for foreign investors to identify labour costs, the aim being to create a more favourable climate for new companies to enter the economy and create new jobs.
More economic news, in Italian, on the Italy-Thailand Business Forum.