Sri Mulyani: PEN Fund Proof Of Responsive And Adaptive Government In Handling The COVID-19 Pandemic

JAKARTA - The government through the Minister of Finance (Menkeu) Sri Mulyani said the allocation of the National Economic Recovery (PEN) expenditure was proof of the state's commitment to responsively protect citizens from the impact of the COVID-19 pandemic. According to him, the PEN budget can continue to grow in accordance with the dynamics that occurred at that time.

"This PEN program is not something that has been completely set from the beginning, but the government continues to adapt and flexible," he said when he was a speaker at the Seminar on the Indonesian Economic Bachelors Association (ISEI) which was broadcast virtually, Tuesday, December 31.

The Minister of Finance added that although the budget ceiling is quite dynamic, the government has determined a number of sectors that are priority targets. The first is the pillar of health. Followed by social protection (perlinsos), priority programs, support for SMEs and corporations, and finally business incentives.

“This year's ceiling (PEN) has even increased after the occurrence of the COVID-19 delta variant. The total budget for handling the pandemic and economic recovery has increased to IDR 744 trillion," he said.

The Minister of Finance said that initially the government only projected the budget to be used at Rp400 trillion.

"This is proof that we continue to adapt and be flexible in dealing with COVID-19," he stressed.

For information, the PEN budget realization until the end of August 2021 is IDR 340.84 trillion or equivalent to 45.8 percent of the provided ceiling.

In detail, absorption in the health sector was recorded at 34 percent or IDR 80.48 trillion. Then, social security measures 55 percent or Rp 102.69 trillion, support for MSMEs and corporations Rp 48 trillion or 29 percent, priority programs 44 percent or Rp 52.3 trillion, and business incentives Rp 56.7 trillion or 50.3 percent.