A flyover is being constructed to reduce chronic congestion in Jakarta, Indonesia. (Source: VNA)

The Indonesian government on October 7 announced its third economic stimulus package in an effort to attract investment and reverse the economic decline.

According to Indonesian authorities, the new measures include loosening regulations concerning banks on managing export profits in foreign currencies, reducing time and simplifying procedures in granting business licences, lowering loan interest rate, reducing electricity tax and cutting fuel prices.

Specifically, the Indonesian government decided to increase the number of banks allowed to manage export deposits, relax requirements for lenders to manage funds. The policy is intended to support the second economic stimulus package, which encourages exporters to keep profits in Indonesia.

The move aims to increase the USD supply to support the rupiah, which is currently at the weakest level against the US dollar since 1998.

The government will also provide financial support to small- and medium-sized enterprises. The time for investors to be granted land-use certificates and extend the certificate will be reduced.

In addition, electricity tariff will be cut by 30 percent for industrial activities from 23pm to 8am. The government is considering suspending the payment of 40 percent of the total electricity bill until 2016 to support companies suffering from economic recession and the devaluation of the rupiah.

The Minister of Energy and Mining Resources Sudirman Said said the diesel price would reduce from 6,900 rupiah per litre (0.49 USD per litre) to 6,700 rupiah per litre (0.48 USD per litre) and the energy price for industry will also be cut.

Indonesia’s 2015 economy increased at the lowest pace in the past six years with 4.71 and 4.67 percent in the first and second quarters, respectively.-VNA