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Jakarta Post

COVID-19 aid funding held up by red tape

  • Adrian Wail Akhlas

    Jakarta

Jakarta   /   Fri, July 3 2020   /  01:00 am
Hard cash: Finance Minister Sri Mulyani Indrawati (left) and State-Owned Enterprises Minister Erick Thohir announce the government’s placement of Rp 30 trillion (US$2.12 billion) in state banks on June 24. The funds will be channeled as loans to businesses to boost the real sector.(Antara/Sigid Kurniawan)

Several administrative issues have hampered the government’s efforts to disburse COVID-19 funds swiftly, Finance Minister Sri Mulyani Indrawati has said, as economists push the government to quickly channel the funds to avoid slowing economic recovery. Sri Mulyani admitted that the stimulus spending was still slow to take effect on the economy due to the operational challenges. “The stimulus is currently in the early stage and we will improve [disbursement] to speed up spending,” she said on Monday, urging ministries and government agencies to accelerate spending in a bid to bolster the economy. Disbursement of the COVID-19 budget for the healthcare sector, for instance, stood at less than 5 percent so far, she added. The Health Ministry has encountered problems in verifying the hospitals, the doctors’ names and their area of duty, meaning that not all fr...