Observers Say, Delays In Budget Expenditures Will Be Assessed Negatively By Investors

JAKARTA - President Joko Widodo asked four ministries and institutions to accelerate government spending amid the COVID-19 pandemic. This is because Jokowi's ranks, who have a huge budget, are apparently still "stingy" in spending their budget for their program.

Economic observer from INDEF, Nailul Huda agreed with the assumption that ministers are still slow in absorbing policy budgets, so the potential for investors to enter will be even smaller.

"Investors will view the slack in budget spending as a negative thing," Nailul said when contacted by VOI, Thursday, July 9.

Nailul meant, when the minister disbursed a budget for program spending, the circulation of money would occur in the community. Moreover, due to the COVID-19 pandemic, the economy has become sluggish.

There is a need for a lighter so that the economic sector can move again, originating from budget expenditures. However, if budget expenditure is delayed, economic conditions will not rise.

"If this is the case, money in the community will definitely be even more sluggish. There will be no increase in consumption and investors are not looking at it," said Nailul.

Therefore, Nailul suggested that the ministers move quickly to make budget expenditures. After all, he said, Jokowi had opened the door by issuing Government Regulation in Lieu of Law (Perppu) No.1 of 2020 concerning State Financial Policy and Financial System Stability for Handling the COVID-19 Pandemic.

"The legal umbrella also has a Perppu. It is just the implementation in the ministries and institutions. Ask them to quickly make internal rules for budget disbursement," he said.

The COVID-19 pandemic has caused the entire world economy to collapse. A number of other heads of state who are actively communicating with Jokowi also agree with the decline in the economic sector. The predictions of the world economy are changing at a fast pace. Unfortunately, that analysis leads to something bad.

"Finally, the OECD (Organization for Economic Co-operation and Development) even (mentions) minus 6 to minus 7.6 percent, try, keep changing. But if we are not horrified and think this is mediocre, gosh, it's really dangerous. "Spending is also mediocre, our spending is mediocre, there is no acceleration," said Jokowi in a Limited Meeting Regarding the Acceleration of Budget Absorption in Six Ministries / Agencies, Tuesday, July 7.

The only hope that can move the economy is the government through ministry spending actions. Jokowi's hope lies with a number of ministries that have jumbo budgets.

"I ask everything to be accelerated, especially those with a large budget. This is the Ministry of Education and Culture, which has Rp. 70.7 trillion, the Ministry of Social Affairs Rp. 104.4 trillion, the Ministry of Defense Rp. 117.9 trillion, the Police Rp. 92.6 trillion, the Ministry of Transportation Rp. 32.7 trillion. ministries and also in the police, everything is accelerated, the spending, "pleaded Jokowi.

"So what I present here, what I invite is the (budget) that was big," he continued.

For the umpteenth time, Jokowi asked all his ministers not to use old habits at work. All ministers must be creative in finding solutions. All rules that can take weeks or months to process must be trimmed to a daily count.

"How do you do it? Ladies and gentlemen, and you know better than me, resolve this. Come back again, don't be ordinary," said Jokowi.

The COVID-19 pandemic has disrupted all sectors. Starting from demand, supply to production, everything is disrupted and damaged. Jokowi himself does not fail to appreciate the cultural changes made by his ministers after being sprayed some time ago. However, he felt that he was still lacking.

"Even though in a crisis situation, we should work even harder. Do not work just ordinary. Work harder and work faster," Jokowi added.