Jakarta (ANTARA) - Chairperson of the Indonesian Employers’ Association (Apindo), Hariyadi Sukamdani. (ANTARA/Ade Irma Junida)
"Of course, it is very good; it will certainly move people's purchasing power, so that the economy will also move," he said when contacted by ANTARA in Jakarta on Monday.
The relaxation of sales tax on luxury goods (PPnBM) for cars will reduce the sale price of cars and encourage the middle class to make purchases, he noted.
"The target (groups are): the middle to upper society. They do have purchasing power," he added.
The same thing also happened with incentives in the property, hotel, and cafe sectors, which are believed to have boosted public consumption, Sukamdani remarked.
"Thus, the national economic recovery will occur. And the two sectors will stretch again," he added.
However, Hariyadi added, the policy needs to be accompanied by efforts to overcome the pandemic as current economic policies also depend on the implementation of health policies.
If COVID-19 cases continue to decline, the established economic policies could be implemented more quickly and the maximum impact can be felt, he noted.
Indonesian President Joko Widodo earlier laid emphasis on the concomitant handling of health and economic problems.
"The handling of health and economic problems cannot be separated," the Head of State noted in his remarks while joining the virtual celebrations of the 2021 National Chinese New Year from the Bogor Palace in West Java on Saturday.
The President emphasized that the Indonesian nation must be able to demonstrate that health problems can be handled optimally, so that confidence can emerge for economic recovery.
Furthermore, the nation must be able to demonstrate that the social and political situation is stable, so that the people's purchasing power can continue to increase, he added.
"Supply and demand must be raised together and synergistically, and this cannot only be done by the government and monetary authorities; once again the role of the private sector and the business world has also become very decisive and key," the President said. (INE)
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