Govt Introduces New Economic Emergency Safeguards

The government has leveraged the lessons learned from the Covid-19 pandemic and external upheavals that led to inflation in recent years.

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9 Jan 2024 - 10.11
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Govt Introduces New Economic Emergency Safeguards

Illustration of economic growth./BISNIS-DUL

Bisnis, JAKARTA — The government has leveraged the lessons learned from the Covid-19 pandemic and external upheavals that led to inflation in recent years. Consequently, new instruments have been introduced to effectively address economic emergencies.

The framework for addressing economic emergencies is outlined in Government Regulation (GR) No. 1/2024 on Harmonization of National Fiscal Policy. This regulation is a derivative of Law No. 1/2022 on Financial Relations Between the Central Government and Regional Governments (HKPD).

Published on January 2, 2024, the government has defined four mechanisms for handling or controlling the economy during emergencies through this regulation.

First, refocusing and reallocation of the State Revenue and Expenditure Budget (APBN). Second, refocusing and reallocation of the Regional Revenue and Expenditure Budget (APBD), along with modifications to its usage.

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Govt Introduces New Economic Emergency Safeguards

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