TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati, said that the Finance Ministry is planning to further reduce capital expenses by IDR 50 trillion. She explained that the cut will be channeled to efforts to mitigate the spreading of Covid-19.
"[The reduction] is plausible and it is already included in our Finance Minister Regulation so we have reserved an additional cut of IDR 50 trillion for precautions," Sri Mulyani said in a work meeting with Commission XI of the House of Representatives on Wednesday, May 6, 2020.
Sri Mulyani explained that the IDR 50 trillion reductions will be reserved for purposes related to social aid and business stimulus.
The Minister said that previously, capital expenses have been reduced by 52 percent from IDR 209 trillion to IDR 158 trillion through the issuance of Presidential Regulation No. 54 of 2020.
Sri asserted that the IDR 158 trillion capital expenses is smaller compared to the IDR 180 trillion in 2019, and IDR 184 trillion in 2018.
Not only capital expenses, the government had also reduced expenses for government ministries and institutions through business travel budget reduction by IDR 33.7 trillion and other goods procurement expenses reduction amounting to IDR 18.2 trillion.