Finance Minister, Sri Mulyani Indrawati reported, Indonesia experienced budget deficit Rp76.4 trillion (US$4.92 billion) or 0.45 percent of of gross domestic product (GDP) in the first quarter of 2020 - Photo by TheInsiderStories

JAKARTA (TheInsiderStories) – Finance Minister, Sri Mulyani Indrawati reported, Indonesia experienced budget deficit Rp76.4 trillion (US$4.92 billion) or 0.45 percent of of gross domestic product (GDP) in the first quarter (1Q) of 2020. In the same quarter of 2019, the deficit recorded Rp101.96 trillion or 0.63 percent of GDP.

In details, the government revenues recorded Rp279.9 trillion or grew 0.8 percent from last year worth of Rp278.7 trillion (15 percent of the 2020 State Budget target). While state expenditure Rp482.4 trillion, or representing 17.8 percent of this year target or edged up 0.1 percent compared to the same period in 2019.

Central government expenditure is Rp277.9 (16.5 percent of 2020′ targets) and up 6.6 percent compared to 1Q of 2019. While, the realization of transfers to the regions and village funds is Rp174.5 trillion (20.4 percent of this year target) or down 8.8 percent compared to the previous year.

As reported, President Joko Widodo has decided widened the 2020 State Budget deficit from 2.5 percent to 5.07 of GDP to curb the country’ economy from the impact of COVID-19. To that, he has signed lieu of laws of the state budget and will immediately send to parliament.

“I just signed the regulation in lieu on it and will implement the relaxing for three years period until 2022. Immediately we will be submitted the revision of (2020 State Budget) to the parliament,” said the head of state in a video conference today on March 31.

He elaborated, to curb the economy from the spread of COVID-19, the government adds the spending worth of Rp405.1 trillion. In details, Rp75 trillion will distributes for health spending, like purchase of personal protective equipment, test kits, referral hospitals, incentives for doctors, other medical workers, ventilators and death insurances.

Then Rp110 trillion for social protection like poverty alleviation program for 10 million beneficiaries, cards groceries 20 million families, pre-work cards for 2.6 million recipients, exemption from electricity costs for three months period, basic food and logistical support.

In addition, Rp70.1 trilliun for tax and stimulus incentives. While, Rp150 trillion for fan economic recovery program, including credit restructuring, guarantees and financing of the business world for six months.

For the non-fiscal sector in ensuring the availability of goods, including industrial raw materials, the government applies a simplified export ban, simplification of a limited import ban, the acceleration of services in the import-export process through the national logistics ecosystem.

In total the government spending in 2020 will rises form intial plans Rp2,540.4 trillion to Rp2,945.5 trillion. While the revenues its expecting lowers then initial target Rp2,233.2 trillion.

In the same presser, Widodo also announced the country situation as the large-scale social restrictions. The policy taken based on the  legal basis  Law Number 6 of 2018.

“I have signed the government regulation. So I hope the provinces and cities please coordinate with the head of the COVID-19 task force so that we have the same rules in accordance with the Law, presidential decree and the government regulation,” he asserted.

US$1: Rp15,500

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