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Additional budget to overcome the impact of the Covid-19 pandemic

 


KOMPAS.com – It is not surprising that President Joko Widodo is furious at the development of budget disbursement for the program National economic recovery (PEN). All the regulations related to the additional budget allocations to overcome the Covid-19 pandemic in Indonesia have been in effect for a long time.

Starting with the government regulation in place of law number 1 year 2020, which was established as law number 2 year 2020, followed by a change in budget allocation through presidential regulation number 54 year 2020.

On the basis of data submitted by the Minister of Finance Sri Mulyani Indrawati during a working meeting with the Parliament on June 24, 2020, the absorption of the budget of the PEN program for the health sector was only 4, 68%, social protection 34.06% and sectoral assistance and local government was only 4.01%.

Read also: The realization of the PEN budget for companies is always 0%, this explains the Ministry of Finance

For each of these areas, it is not only the responsibility of the technical ministry but all related work units.

For example, in the health sector, in addition to providing incentives to health workers and the purchase of health equipment by the Ministry of Health, in the budget allocation there is also the purchase of Personal protective equipment (PPE) by the Covid-19 working group, the budget managing BPJS Health in order to be able to pay hospital claims, as well as tax incentives granted directly to hospitals for health services.

This budgetary disbursement process therefore requires close synergy and coordination in all the institutions.

But behind Mr. Jokowi’s anger, he still paid close attention to the Covid-19 pandemic case.

For this, the government through the instrument State budget add more spending allowances so that the total spending to overcome this pandemic is Rp 695.2 trillion. This modification was stipulated by presidential regulation number 72 of 2020 which entered into force since its promulgation on June 25, 2020.

The main change is the deficit of 2020 which should be higher than before at Perpres 54/2020, against 5.07% of the GDP estimated at 6.34%.

This is primarily due to the fact that government revenues are expected to decrease by 60.5 trillion rupees due to the economic downturn and tax incentives.

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