Ministry Of Industry Prepares IDR 33.61 Billion For SME Entrepreneur Development For Layoff Victims

JAKARTA - The Ministry of Industry will reallocate and refocus the APBN-P to help the industrial sector survive the pressure of the corona virus or COVID-19. As is known, as a result of this pandemic, many companies have lost money, even gone bankrupt.

The Ministry of Industry also provides a budget of IDR 33.61 for the development of small and medium-sized industrial entrepreneurs (IKM), especially for victims of termination of employment (PHK).

Secretary General (Sekjen) of the Ministry of Industry (Kemenperin) Achmad Sigit Dwiwahjono said the total refocusing budget for IKM was Rp. 59.91 billion or 79 percent of the total planned reallocation of Rp. 75.77 billion. This refocusing is to meet the SMIs affected by COVID-19 outside the ministry's internal activities.

"For entrepreneurial development in SMIs affected by COVID-19, especially for workers who are victims of layoffs of Rp. 33.61 billion, of which Rp. 24.9 billion is the budget that is in deconcentration funds," he said, during a hearing (RDP) with Commission VI virtually , in Jakarta, Tuesday, April 28.

Then, he continued, the refocusing budget was also used for the development of IKM centers affected by COVID-19 to facilitate raw materials and auxiliary materials of Rp. 11.35 billion.

Not only that, Achmad Sigit explained, a budget of IDR 3 billion was also provided by the Ministry of Industry for the development of IKM products affected by COVID-19.

"Furthermore, the restructuring of SMI machines and equipment affected by COVID-19 amounted to Rp. 11.94 billion," he said.

According to Achmad Sigit, in accordance with the circular letter (SE) of the Ministry of Finance dated April 15, 2020 regarding steps to adjust ministerial / institutional spending for the 2020 budget year, the Ministry of Industry has adjusted the expenditure budget with the 2020 APBN-P.

First, said Achmad Sigit, the budget savings amounted to Rp. 858.8 billion, so that the original ministry budget was Rp. 2.95 trillion to Rp. 2.09 trillion.

"Second, the savings include education savings of Rp.303.73 billion. So that the ministry's education budget which was originally Rp1.04 trillion becomes Rp740.26 billion," he explained.

Then, he continued, reallocation was also carried out in the sector of increasing the target of non-tax state revenue (PNBP) of around Rp. 23.37 billion. So that the original target was IDR 153.01 billion to IDR 176.39 billion.

Achmad Sigit said, with the savings, the posture of the Ministry of Industry based on the Echelon 1 unit program has changed.

First, the industrial management support program, which was originally from Rp. 263.13 billion to Rp. 164.88 billion. Second, agro-based industry growth and development program from IDR112.35 billion to IDR54.09 billion.

Third, the chemical, pharmaceutical and textile industry growth and development program, which initially amounted to Rp. 124.15 billion to Rp. 66.28 billion. Fourth, the growth and development program for the metal, machinery, transportation equipment and electronics industry, which initially amounted to IDR127.43 billion, has decreased to IDR66.69 billion.

Fifth, the program for the growth and development of small, medium and miscellaneous industries to Rp. 286.84 billion from Rp. 365.77 billion. Sixth, the program for monitoring and increasing the accountability of the apparatus of the Ministry of Industry has also undergone a change from the original Rp.49.72 billion to Rp.30.11 billion.

Seventh, the technology development program and industrial policy from IDR 694.63 billion to IDR 568.23 billion. Eighth, the program budget for the improvement and resilience of industrial area development and international industrial access, which initially amounted to IDR151.38 billion, to IDR101.97 billion. Finally, the industrial resource development program budget from all Rp1.06 trillion to Rp754.03 billion.

"Even though the budget has been significantly reduced due to budget savings. The Ministry of Industry will continue to plan for budget reallocation or refocusing to help industrial sectors affected by COVID-19, especially prioritizing small and medium industries," he explained.