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Govt raises COVID-19 recovery budget by 7%
Sri Mulyani said the government would restructure the state budget once again to accommodate the increase.
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President Joko Widodo (second right) and Vice President Ma'ruf Amin (right) converse with Finance Minister Sri Mulyani Indrawati (second left) and Cooperatives and Small and Medium Enterprises (SME) Minister Teten Masduki before chairing a limited cabinet meeting in the President's Office, Jakarta, on June 6, 2020. The government has decided to increase its national economic recovery (PEN) budget as it battles a second COVID-19 wave. (Antara/Hafidz Mubarak A)
T
he government has raised the national economic recovery (PEN) budget for the second time this year to finance the country’s fight against a second COVID-19 wave.
Finance Minister Sri Mulyani Indrawati said on Saturday that the budget had been raised by 6.5 percent to Rp 744.75 trillion (US$53 billion), most of which will be channeled to social safety net and healthcare programs. The ministry last raised the PEN budget by 73 percent in February.
Sri Mulyani said the government would restructure the state budget again to accommodate the higher PEN budget without adding more debt.
“We will reallocate funds again, either from the central government or regional administration budgets, so that they can be prioritized to help the people, handle COVID-19 and ensure the business sector’s recovery,” she told reporters during an online press conference.
Prior to raising the budget, the government decided to extend emergency public activity restrictions (PPKM Darurat) from July 20 to July 31, Coordinating Human Development and Culture Minister Muhadjir Effendy said on Friday.
Read also: Conflicting statements brings uncertainty over PPKM Darurat
However, Coordinating Maritime and Investment Affairs Minister Luhut Pandjaitan, who was tasked with coordinating the government’s COVID-19 response in PPKM Darurat areas, declined to confirm the extension on Saturday. He said the government would announce its final decision either Monday or Tuesday.
