Senin 07 Dec 2015 15:11 WIB

In economic policy package VI, govt targets street vendors

Rep: C09/ Red: Julkifli Marbun
Ferry Mursyidan Baldan.
Foto: Antara
Ferry Mursyidan Baldan.

REPUBLIKA.CO.ID, JAKARTA -- The government launched a economic policy package volume VII, Friday (4/12) afternoon. In this package, the government made policies that can open up access to finance for vendors.

Minister of Agrarian and Spatial, Ferry Mursyidan Baldan, said he would soon issue a ministerial regulation on the use of state land for street vendors. The vendors who have received permission from local government, would then be given a letter of Right to Build (HGB) for five years.

"HGB could be collateral to the banks," said Ferry, at the Presidential Office, Friday (4/12).

Read: Darmin says to explain economic policies per sector

He claimed to have been coordinated with Financial Services Authority (OJK) to provide financial access to vendors who use HGB as collateral.

"Certificates in the agrarian reform have legal access and access to banking," he added.

Ferry revealed, there are 34 areas that are ready to follow the program of HGB for the street vendors. The program would then be launched in Banten in the near future.

Read: VP: Seventh policy package to ease investment

In addition to banking access for vendors, economic policy package VI also contained a tax reduction of employees paid by the company. Coordinating Minister for Economic Affairs, Darmin Nasution, said there reduction on tax for employees who work in labor-intensive industries for a period of two years.

"It will be evaluated if it could be extended through the issuance of government regulations," said Darmin.

However, labor-intensive companies that are entitled to tax reduction are companies that only use Indonesian workers of at least 5,000 people.

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