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Cabinet shake-up expected to accelerate COVID-19 spending, spur economy
The government has spent nearly half of the Rp 96.17 trillion (US$6.7 billion) healthcare budget allocated in the coronavirus stimulus as patients overwhelm hospitals and people struggle to get tested.
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A staff member works on coronavirus serology tests at the laboratory of Pertamina Central Hospital in Jakarta on Dec. 16. (REUTERS/Ajeng Dinar Ulfiana)
T
he newly installed ministers in President Joko “Jokowi” Widodo’s Cabinet should improve the government’s COVID-19 pandemic handling and health spending to support the country’s economic recovery, experts have said.
Institute of Development on Economics and Finance (Indef) economist Eko Listiyanto said the new ministers’ performance going forward would be largely determined by how they overcome the current global health crisis, particularly regarding vaccine procurement and distribution.
“The lead is on the health minister with his important role in the country’s handling of the crisis. The impact will extend to the other ministries,” Eko told The Jakarta Post on Tuesday. “Once the pandemic is under control, then we can talk about the economy.”
He said the latest Cabinet reshuffle, particularly the replacement of the health minister, gave the country the opportunity to resolve its sluggish health budget spending.
“The current weakness [in health financing] is all the money that is not being spent, and this might be a managerial, technical [problem]. It should be handled by a professional who is not necessarily a doctor,” Eko added.
The government has spent Rp 46.68 trillion (US$3.3 billion) or 48.54 percent of the Rp 96.17 trillion healthcare budget allocated within the national economic recovery (PEN) program as of Dec. 16, according to Finance Ministry data. The figure is lower than the spending on social protection and support for micro, small and medium enterprises (MSMEs), which saw a 94.15 percent and 91.73 percent budget disbursement, respectively.
Jokowi inaugurated on Wednesday six new ministers in the first Cabinet reshuffle of his second term in office.
