Economics
Red Tape Holds Up $50 Billion Needed to End Indonesia Slump
- Economy could be heading for recession amid stimulus delay
- Spending on health care is less than 5% of alloted $6 billion
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Indonesia’s bureaucratic red-tape is preventing almost $50 billion in fiscal support from being disbursed to virus-hit businesses and health care workers, risking a deeper economic slump amid a surge in cases.
The government has spent less than 5% of the 87.6 trillion rupiah ($6 billion) set aside for priority health care because of delays in verification and approval processes. Some 85% of 120.6 trillion rupiah in tax-breaks and other benefits for companies has yet to be allotted, official data show.