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Jakarta Post

Ministries need more info to expedite budget execution

‘Silakan’: President Joko “Jokowi” Widodo presents the draft of the 2021 state budget to House of Representatives Speaker Puan Maharani during a plenary session on Aug. 14. (Antara/Akbar Nugroho Gumay)
Windraty Ariane Siallagan
PREMIUM
Jakarta   ●   Mon, August 24 2020

To address the impact of the COVID-19 pandemic, the government has increased the 2020 state budget to a total of Rp 2.73 quadrillion (US$188 billion), including Rp 695.2 trillion for economic recovery programs (PEN). However, although 45.7 percent of the budget had been disbursed as of July, spending in the PEN component remained quite low.

The execution of the state budget starts with the enactment of the budget execution document (DIPA). In the DIPA, the budget established by law is broken down into line items of ministry budget ceilings. If a fiscal stimulus is added to the budget, the DIPA must be revised. Revision of the DIPA is required before fiscal stimulus funds can be released to various ministries, departments, agencies and regional governments enumerated in the budget.

The PEN budget is of particular importance because it aims to address the COVID-19 pa...

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