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Jakarta Post

Govt to provide $24b pandemic stimulus funding next year

  • Adrian Wail Akhlas

    The Jakarta Post

Jakarta   /   Fri, August 14, 2020   /   05:23 pm
Govt to provide $24b pandemic stimulus funding next year President Joko "Jokowi" delivers his speech on the proposed 2021 state budget draft at the House of Representatives building in Jakarta on Friday. The government will allocate Rp 356.5 trillion (US$24.04 billion) in pandemic-related stimulus funding next year in an effort to further support the country’s economic recovery, as well as to strengthen the healthcare system, including the provision of a coronavirus vaccine. (Antara/Akbar Nugroho Gumay)

The government will allocate Rp 356.5 trillion (US$24.04 billion) in pandemic-related stimulus funding next year in an effort to further support the country’s economic recovery, as well as to strengthen the healthcare system, including the provision of a coronavirus vaccine, President Joko “Jokowi” Widodo said on Friday.

He pledged to continue this year’s stimulus allocation into 2021, which will also include funding for social protection and micro, small and medium enterprises (MSMEs) support, while fiscal relaxation will be implemented again to support the government’s agenda.

“We will continue the economic recovery programs along with reform of several aspects,” Jokowi said in his state of the nation speech to the People’s Consultative Assembly in Jakarta.

The government will provide Rp 25.4 trillion next year for health care, including the procurement of coronavirus vaccines once they are available and to support laboratories and healthcare facilities.

It will also provide Rp 110.2 trillion for social aid, including for the Family Hope program, cash transfers and the pre-employment card program, among other things.

Furthermore, the government will allocate Rp 136.7 trillion for ministries and regional administrations to improve tourism, food security, industrial areas, communication and technology development and as loans for regions, among other projects.

Some Rp 48.8 trillion is being set aside for MSMEs, Rp 14.9 trillion for state-owned enterprises and corporations and another Rp 20.4 trillion for tax incentives.

Indonesia has allocated Rp 695.2 trillion in stimulus spending this year to support the cooling economy and fund the pandemic response with the state budget deficit expected to come in at 6.34 percent of gross domestic product (GDP).

The government expects next year’s budget deficit to amount to Rp 971.2 trillion, 5.5 percent of GDP, given the need to further boost the economy and provide social and healthcare assistance.