The National Economic Recovery (PEN) Program is one of the many series of measures implemented by the Government in response to Covid-19 and its economic impact.

Apart from handling the health crisis, the PEN program aims to revitalize the economy by providing aid to affected communities. The implementation of the PEN program is regulated in Government Regulation of the Republic of Indonesia Number 23 of 2020 (PP 23/2020)

PEN & IP PEN Program

PEN Program Goals

The PEN program is an initiative to protect, preserve, and support the economic capacity of businesses in the face of Covid-19.

Where’s the PEN Program Capital From?


State Expenditure

among others, to subsidize MSME interest through financial institutions.

Placement of Funds

for banks affected by restructuring.


for working capital loans.

State Equity Participation

for SOEs whose capital is affected and special assignments.

Government Investment

for working capital.


PEN Program Launched to Stimulate the Business Sectors, including:



Support to MSMEs is provided through:

  • Interest Subsidy: IDR 34.15 trillion.

  • Tax Incentives: IDR 28.06 trillion (PPh 21 DTP, final PPh UMKM DTP).

  • Guarantee for new MSME working capital loans: IDR 6 trillion.


Support to Corporation is provided through:

  • Tax incentives: IDR 34.95 trillion (free PPh 22 imports, reduced PPh 25 installments, preliminary VAT refund).

  • Placement of Government funds in banks for restructuring of MSME debtors: IDR 35 trillion.


  • State Equity Participation.

  • Compensation payment.

  • Bailout (investment) of working capital.

  • Other supports: Optimization of BMN, Bill Repayment, Loss Limit Guarantee, Delay of Dividends, Government Guarantee, National Strategic Project Bailout Payment (PSN).

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