For the second time, Indonesian government revised the 2020 State Budget to support the Economic Recovery Program (ERP) and curb the economy - Photo by TheInsiderStories

JAKARTA (TheInsiderStories) – For the second time, Indonesian government revised the 2020 State Budget to support the Economic Recovery Program (ERP) and curb the economy. In the new revision the government widens the budget deficit from Rp852.9 trillion (US$58.82 billion) or 5.07 percent of gross domestic products (GDP) to Rp1,039 trillion or 6.34 percent of GDP.

“Presidential decree Number 54 (of 2020) will be revised to reflect the needs until the end of the year so that our economic growth does not fall sharply. With the economic recovery program and the handling of COVID-19,” finance minister, Sri Mulyani Indrawati, told reporters after the limited meeting on the ERP program through a tele conference on Wednesday (06/03).

She said, the 2020 State Budget has changed its posture. In the latest revision, the government revenues is estimating only Rp1,699.1 trillion lower than initial target Rp1,076.9 trillion. While, state expenditure will increase from Rp2,613.8 trillion to Rp2,738.4 trillion, including ERP and to handle the COVID-19 pandemic, central and regional government also sectoral spending.

According to Indrawati, the COVID-19 costs is predicted worth of Rp677.20 trillion consisted of Rp87.55 trillion health. Then, social protection and direct aid Rp203.3 trillion. To support micro, medium, small, medium enterprises (MSMEs) and business incentives Rp120.61 trillion. For financing and corporation Rp44.57 trillion. And, for government institution, sectoral, and regional government Rp97.11 trillion.

She continued, the government also prepared capital injection private and state-owned enterprises (SOEs) with total amount Rp123.01 trillion enjoyed by thousands of entrepreneurs who are considered eligible to receive the tax incentives. Support for 12 SOEs totaling Rp52.57 trillion, of which PT Perusahaan Listrik Negara Rp45.4 trillion, PT Hutama Karya Rp11 trillion, and PT Kereta Api Indonesia Rp3.5 trillion.

Then, PT Bahana Pembinaan Usaha Indonesia Rp6.27 trillion, PT Permodalan Nasional Madani Rp2.5 trillion, PT Perumnas Rp650 billion, PT Pertamina Rp37.83 trillion, ITDC Rp500 billion, Perum Bulog Rp10.5 trillion, PT Jamkrindo Rp12 trillion, PT Garuda Indonesia Tbk (IDX: GIAA), PT Krakatau Steel Tbk (IDX: KRAS), and PT Perumnas. For the two publicly listed wil determines letter, said the minister.

Based the finance ministry calculation, the total tax incentives provided will reach Rp123.01 trillion, consisting of a reduction income tax, exemption of import tax, discount tax by 30 percent, and value added tax refunds will accelerated. She added, there are also additional income tax and other stimulus reserves amounting to Rp14 trillion and Rp26 trillion, respectively.

US$1: Rp14,500

Written by Staff Editor, Email: theinsiderstories@gmail.com