Although PKS was rejected, DPR approves Regulation No. 1 of 2020

YAKARTA, KOMPAS.com – The Indonesian House of Representatives finally approved the Government Regulation instead of Law (Perppu) number 1 of 2020 in Law (Law).

Previously, Perppu governed state financial policies and the stability of the financial system to deal with Corona, in order to face the threats that endanger the national economy and the stability of the financial system.

The decision was made at the 15th plenary session attended by nine factions. However, of the nine factions, there was one faction that refused, namely the Prosperous Justice Party (PKS).

The eight factions that agreed were PDI Perjuangan, National Democratic Party, Golkar, United Development Party, National Awakening Party, Democratic Party, National Mandate Party and Gerindra Party.

Also read: Perppu Corona is considered quite sensitive

“In the opinion of the mini-faction, there are 8 factions that agree and 1 faction that expresses objections,” Indonesian Parliament Speaker Puan Maharani said in the RI DPR plenary room on Tuesday (05/12 / 2020).

President of the Budget Board of the Indonesian House of Representatives, Said Abdullah, said the eight factions that declared their approval of the Perppu bill became law by providing notes. While PKS rejects this decision because Perppu 1/2020 has the potential to violate the constitution due to various articles that tend to conflict with the 1945 Constitution of the Republic of Indonesia.

As is known, Perppu was issued by President Joko Widodo to deal with the corona virus pandemic (COVID-19) that hit the national and global economy.

Through this Perppu, the government widens the budget deficit to a maximum of 5 percent by 2022. It widens the deficit due to the government’s decision to provide a fiscal stimulus through additional spending and financing in the 2020 State Budget to manage Covid-19.

To manage the pandemic, the government invested a budget of Rp 405.1 billion to be used for health funds of Rp 75 billion, Rp 110 billion for social safety nets or SSNs, Rp 70.1 billion for tax incentives.

The funds include Rp 150 trillion to be allocated to finance the national economic recovery program, including credit and guarantee restructuring, as well as financing for MSMEs and companies.

Furthermore, Perppu mentioned the additional authority of three institutions, namely the Bank of Indonesia (BI), the Deposit Insurance Agency (LPS) and the Financial Services Authority (OJK).