PEN Budget Is IDR 699 Trillion, Absorption Is Still Far From 50 Percent Until Mid 2021

JAKARTA - The government through the Ministry of Finance said that the realization of the National Economic Recovery (PEN) budget until June 18, 2021, reached IDR226.63 trillion or 32.4 percent of the ceiling set in the 2021 State Budget of IDR 699.4 trillion.

Minister of Finance, Sri Mulyani, said the optimization of state spending was continuously carried out in line with efforts to reduce the impact of the pandemic on various sectors.

"The government will continue to strengthen economic resilience to maintain the momentum of the ongoing recovery", she said at an online press conference on our State Budget, Monday, June 21.

In detail, the PEN budget is divided into five priority sectors. First, the health PEN program has been realized for IDR 39.55 trillion or 22.9 percent of the ceiling.

Meanwhile, the benefits obtained from the health PEN program are testing and tracing, treatment costs for 206,270 patients, health workers incentives, death benefits as well as drugs and PPE, including the procurement of 37.78 million doses of vaccine.

Second, the realized social protection sector amounted to IDR 64.91 trillion or 43.8 percent for the PKH program, basic food cards, BST, Village BLD, pre-employment cards, and internet quota assistance.

Three, priority programs with the realization of IDR 38.10 trillion or 29.8 percent, among others, for labor-intensive programs and tourism development, supporting food security, as well as developing ICT and industrial estates.

Fourth, providing support to MSMEs and corporations, as well as providing business incentives. The support for MSMEs and corporations has been realized for IDR 48.05 trillion or 24.8 percent of the target, among others, is used to provide Government Assistance to Micro Enterprises (BPUM), IJP (guarantee fee) MSMEs, and corporations, as well as placement of funds in banks.

And the fifth is the provision of business incentives that reach IDR 36.02 trillion or 63.5 percent of the ceiling, including incentives for various types of PPh and VAT.

“State spending must support economic recovery and still needs to be improved in terms of quality. Don't let us spend but the community or the economy don't feel or don't feel the benefits", closed Minister Sri Mulyani.