AmCham Update
AmCham Update Vol. 3 #87
Covid Budget and Task Force, Post-Covid Economic Risks, Noodle Threat Denied
Aug 12, 2022

Ministry of Finance: No Covid-19 Budget Next Year

The government will no longer allocate a budget for Covid-19-related expenses starting next year. However, Minister of Finance Sri Mulyani Indrawati said the budget for health-related expenses will increase from Rp 133 billion this year to Rp 168.4 billion in 2023 to strengthen Indonesia’s health system. Over the past two years, Covid-19 pandemic handling has been included in the National Economic Recovery (PEN) program, to cover various needs including vaccine purchase, patient claims, and incentives for medical workers.

The government is also reportedly planning to disband the Task Force for National Economic Recovery and the Covid-19 Handling Task Force next year, replacing them with a Global Crisis Response Group (GCRG). The group will focus on handling various global issues, especially those related to food security, energy, and financial stability, Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso said. However, the plan will only be carried out if the Covid-19 situation in Indonesia continues to improve, he said. 

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Sri Mulyani: Post-Covid Economic Risks Await

Economic risk is shifting from the Covid-19 pandemic to global economic pressures, such as the war in Russia and Ukraine and rising tensions between China and Taiwan, Minister of Finance Sri Mulyani Indrawati said. These global economic pressures will impact the supply side of the economy, while the demand for goods and services will increase due to improving Covid-19 handling. This has caused high global inflation and volatile financial markets.

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Removal of BPJS Classes Awaits Trial Results

The government has yet to decide when the Social Security Agency for Health (BPJS) elimination of inpatient classes and tariff adjustments will be implemented. The policy is still undergoing a trial process by the government, Member of the National Social Security Council (DJSN) Asih Eka Putri said.

The trial started on July 1 in five government-owned hospitals. Asih said the legal basis for the move has yet to be issued, specifically President Joko Widodo has yet to provide clearance for the BPJS to revise Presidential Regulation 28/2018 on Health Assurance. When the policy is implemented, fees will be adjusted to the income of recipients..

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Minister Denies Noodle Threat

The price of instant noodles will rise over the next few month due to 4.9 percent inflation, Minister of Trade Zulkifli Hasan said, but he refuted Minister of Agriculture Syahrul Yasin Limpo's claim they would triple in price.

Wheat prices have risen due to crop failures in Australia, Canada, and the United States, and there are also supply constraints due to Russia's invasion of Ukraine. However, the price is expected to fall due to oversupply in October-November. The contribution of wheat prices to the cost of instant noodle production is only 15 percent, according to the Ministry of Trade's Acting Director General of Domestic Trade Syailendra, making it impossible for the instant noodle price to triple, and Indonesia already has enough wheat stock for the next two months.

Meanwhile, the Ministry of Transportation has also raised the tariff for online motorcycle taxis in Ministerial Decree (KM) Number KP 564/2022 concerning Guidelines for Calculating the Cost of Services for the Use of Motorcycles Used for the Benefit of the Community Carried Out with the Application, issued on August 4.

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More Green Building Incentives, Stricter Regulations Needed

Some 76 percent of new office buildings in Jakarta's Central Business District (CBD) are green buildings or use the environmental, social, and governance (ESG) concept, according to property consultant Knight Frank Indonesia in its Jakarta Property Highlights 1H2022 report.

The report says green buildings require more investment than conventional buildings because the equipment, materials, and technology used must be environmentally friendly. The Jakarta government is gradually implementing regulations such as providing a green space in every office area, but green building certification regulations should go further, to make environmentally friendly buildings dominate Jakarta.

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Colliers Indonesia has released its Colliers Quarterly Property Market Report for the second quarter of 2022. The report presents an overview of Jakarta and Surabaya’s offices, apartments, retail and industrial property; Jakarta expatriate housing; and hotels in Jakarta, Surabaya and Bali. The report also includes information on property market performance during Q2 2022.


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Now is the Time to Join AmCham!

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AmCham Office and Events

AmCham Office and Events

The AmCham Office is transitioning back to the office. We are still maximizing online meetings, using the Zoom platform, but starting to have in-person meetings. You will be notified of the meetings as they are scheduled.





What is Your Company Doing on COVID-19?

Please let us know what measures your company may be taking in the form of donations and other assistance to help Indonesia during this time of confusion and concern. Contact [email protected] with your news. We would like to publicize the ways that our AmCham companies are pitching in.

Stay well

We urge you to send us press releases and other information that we can pass on to the broader AmCham community. If you have items of interest, please email material to [email protected]. Follow this link to information provided by the US Embassy

Stay safe, call a doctor if you have a high fever, cough, or difficulty breathing. Stay healthy above all else.

AmCham Update is AmCham's regular newsletter on developments related to the pandemic crisis and other issues in Indonesia. It is edited by AmCham Managing Director A Lin Neumann and written by the AmCham Staff. Paul L Goddard is the Managing Editor.

Oct 07, 2022 / 09:00 - 10:30
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