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Sri Mulyani Raises Covid-19 Mitigation Budget to Rp695.2tn

16 June 2020 19:42 WIB

TEMPO.CO, JakartaFinance Minister Sri Mulyani confirmed that the government increased the budget for the Covid-19 handling to Rp695.2 trillion from previously set at Rp677.2 trillion.

“The government has conveyed it in the cabinet meeting that there is additional spending in the Presidential Regulation No. 54/2020. Several budgets for Covid-19 handling are increased,” said Sri in a video conference on Tuesday, June 16.

Sri explained that the budget for the health sector rose from Rp75 trillion to Rp87.5 trillion. The cost of social protection was also up to Rp203.9 trillion. Incentives worth Rp120.6 trillion in the form of tax relaxation and others would be granted to businesses that were under heavy pressure.

Read: Sri Mulyani Eyeing 1 Percent Economic Growth amid COVID-19

The Micro, Small and Medium Enterprises (MSEs) would receive incentives of Rp123.46 trillion, while corporations at Rp53.57 trillion.

“We also focus on local governments, as well as ministries and institutions, so that they can be able to hold activities that are directly beneficial for the people by providing a budget allocation of Rp106.11 trillion,” Sri added.

The regional government that reported a decline in local revenue also received facilities in the form of Regional Incentive Funds and Special Allocation Funds, as well as loans. In addition, ministries and institutions are encouraged to establish labor-intensive projects.

"So the whole state budget is focused to reduce the heavy (financial) pressure in the second quarter of 2020,” Sri Mulyani remarked. Thus, economic recovery or financial relief from the Covid-19 pandemic was expected to occur in the third quarter of 2020.

Read more: Indonesia's Poverty Rate Projected Above 10pct Due to COVID-19

CAESAR AKBAR



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