Jakarta cuts taxes, relaxes quotas to shore up economy
JAKARTA - Indonesian Government on Friday announced measures to cut taxes for labour-intensive and export-oriented sectors like textiles and shoe manufacturing, and relax quotas on beef and horticulture imports, in a bid to save jobs and keep inflation in check.
These moves are aimed at moderating the impact of the current turmoil in financial and currency markets to Southeast Asia's largest economy, where the value of the rupiah has gone from 10,300 rupiah to the United States dollar to almost 11,000 rupiah to the dollar over the past week.
The central bank, Bank Indonesia, and the Financial Services Authority (OJK) are also releasing their response to stabilise the financial sector and exchange rate this afternoon.
Coordinating Economic Minister Hatta Rajasa outlined four policy packages with targeted aims: