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President recommends greater use of government spending to stimulate consumption




In November, (we) still have Rp 40 trillion (allocated) for construction (projects). If they are completed then what they will look like, if they are buildings they will collapse. If these are bridges, they will collapse too.

Jakarta (ANTARA) – President Joko Widodo (Jokowi) ordered his staff to maximize public spending in the last month and a half of the year to increase public consumption and bring about national economic recovery.

The government must increase the money circulating to the public to support economic activities, he said at a national coordination meeting on the procurement of government goods and services, held online here on Wednesday.

One of the ways to boost economic activity is to carry out the government’s spending program, Widodo said.

“We remember that government consumption contracted 6% in the second quarter and increased 9% in the third quarter. This is our economic trigger. The economy contracted 5.32% in the second. quarter and showed a positive trend in the third quarter, although it contracted further 3.49 percent, ”he explained.

The president then listed several government programs that have been stuck due to the pandemic. Some construction projects did not start until mid-November 2020.

“In November, (we) still have Rp 40 trillion (allocated) for construction (projects). If they are completed (in a hurry) then what will they look like. If they are buildings, they will collapse. If these are bridges, they will also collapse. We only have a few months left. Don’t start over at the end of the year, ”he warned.

During the crisis created by the COVID-19 pandemic, government spending can propel public demand and consumption, which in turn can stimulate the economy, he said.

He urged the Institute for Public Goods and Services Procurement Policy (LKPP) to find ways to make the best use of information technology. In doing so, the government can oversee the procurement of government goods and services, he said.

“(LKPP) can remind ministers, heads of government institutions and regional heads to step up (the purchase of government goods and services). In addition, during this pandemic, it is very important to speed it up.” , Widodo explained.

At the meeting, the head of state also expressed regret for his staff and regional governments performing routine work and failing to accelerate job creation.

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