President Joko “Jokowi” Widodo has issued Presidential Decree Number 24 of 2021 on Determination of the Factual Status of the COVID-19 Pandemic in Indonesia, stipulated in Jakarta on 31 December 2021.
“The COVID-19 pandemic, a global pandemic according to WHO’s statement, is factually still happening and has not ended in Indonesia,” the first dictum of the decree reads.
Furthermore, in the second dictum, during the pandemic as referred to in the first dictum, the Government shall implement policies in state finances and financial system stability based on:
- Law Number 2 of 2020 on Stipulation of Government Regulation in Lieu of Law Number 1 of 2020 on State Finance Policy and Financial System Stability for the Handling of Corona Virus Disease 2019 (COVID-19) and/or in the Framework of Dealing with Threats Endangering National Economy and/or Financial System Stability into Law;
- Law that regulates the state revenue and expenditure budget after legislative process with the House of Representatives including with regard to approving budget allocations and determining budget deficit limits for COVID-19 handling and its impacts, and after obtaining consideration from the Regional Representatives Council; and
- Other relevant laws and regulations.
“Pertaining to the handling, controlling, and/or preventing of COVID-19 pandemic and its impacts, especially in the health, economic, and social sectors, the Government may determine the policy mix through the establishment of funding scheme between the Government and business entities operating in health services financing and other schemes,” the third dictum reads.
The Issuance of the Presidential Decree is based on the considerations that the COVID-19 pandemic and its spread have not yet ended and have impacts on various aspects of the country including health, economy, and social aspects.
In addition, based on the considerations of the Constitutional Court Justices in the Decision of the Constitutional Court Number 37/PUU-XVlll/2020 which emphasizes the importance of a statement from the President regarding the factual status of the COVID-19 pandemic in Indonesia, it is necessary to provide legal certainty regarding the still happening COVID-19 pandemic.
It is also stated that in order to face the challenges of 2022 pertaining to the still happening pandemic, policy steps are needed, especially in the economic, state finance, and financial sectors, in order to deal with threats to the economy and/or financial system stability as a continuation of the previous policies based on Law Number 2 of 2020 and other relevant laws and regulations. (UN) (FI/LW)
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