JAKARTA (TheInsiderStories) - The ministry of finance has set the national economic recovery program (ERP) budget with total amount of Rp699.43 trillion (US$49.60 billion) in this year, said the minister on Tuesday (02/23). This figure rose by 20.63 from last year’ budget realization of Rp579.8 trillion.
Sri Mulyani Indrawati expect to accelerate the disbursement of the funds in the first quarter of 2021. Last year, the realization of the ERP funds is equivalent to 83.4 percent of the allocated budget ceiling of Rp695.2 trillion. The realization on the health sectors amounted to Rp63.51 trillion, and social protection of Rp. 220.39 trillion
Then, for ministries, agencies and local governments amounted to Rp66.59 trillion. For micro, small and medium enterprises of Rp112.44 trillion. Then, corporate financing at Rp60.73 trillion and business incentives Rp56.12 trillion. For the corporate financing of it was distributed to several state companies.
The entities are PT Bahana Pembinaan Usaha Indonesia Rp6 trillion, PT Hutama Karya Rp7.5 trillion, PT Permodalan Nasional Madani Rp1.5 trillion, PT Pengembangan Pariwisata Indonesia Rp500 billion, PT Penjaminan Infrastruktur Indonesia Rp1.57 trillion, and PT Bio Farma Rp2 trillion.
The other state firm are Indonesia Eximbank also received Rp5 trillion and the Indonesia Investment Authority of Rp 15 trillion. She adds, the rest of funds Rp21.66 trillion will be use for the government investment. The minister explained, part of the funds will used to support the consumption budget Rp172.1 trillion and an interest subsidy Rp34.15 trillion.
According to her, the government also provided tax incentives with total amount Rp123.01 trillion, including stimulus reserves amounting to Rp26 trillion. The country also allocates Rp25.27 trillion for capital injection to the state-owned companies (SOEs).
Then, the government provides fuel subsidies in the framework of mandatory biodiesel 30 percent worth of Rp2.78 trillion. in addition, she continued, the compensation payment Rp90.42 trillion for three SOEs, energy firm, PT Pertamina amounting to Rp45 trillion, food operator Perum Bulog at Rp560 billion and power producer, PT Perusahaan Listrik Negara worth of Rp45.42 trillion.
For the tourism sectors, her ministry budgeted Rp3.8 trillion, housing Rp1.3 trillion, and spending Rp60 trillion. There are also support for local government worth of Rp15.1 trillion, consisting of special allocation reserves Rp9.1 trillion, economic recovery up to Rp5 trillion, and loans to the regions as much as Rp1 trillion.
Moreover, guarantee of new working capital loans for micro, small, and medium enterprises (MSMEs) Rp6 trillion. Indrawati revealed, the government also provides a bailout fund for MSMEs working capital worth of IDR19.65 trillion and a placement of funds for loan restructuring Rp87.59 trillion.
Funding will be carried out through the state bond issuances purchased by Bank Indonesia through the primary market. Director general at the ministry, Luky Alfirman added, the policy has been ruled by the Presidential Decree Number 23 of 2020
Based on the decree, the economic recovery program can be carried out through the mechanism of placement of funds, guarantees, state capital injection, and government investment. At present, said the minister, the government has completed the design of two programs. President Joko Widodo has signed the special rule on May 11, 2020.
With the government efforts, the International Monetary Fund (IMF) sees a better outlook for the Indonesian economy in 2021. The agency estimated, Indonesia’ economic growth will be at 4.8 percent, 40 basis points higher than the previous prediction of 4.4 percent and to grow at 6 percent in 2022. While the World Bank forecasted that Indonesia’ GDP growth will be at 4.8 percent in this year.
US$1: Rp14,100
Written by Editorial Staff, Email: theinsiderstories@gmail.com
