Business Incentives Become The Most Complex PEN Program
JAKARTA - Head of Fiscal Policy Agency (BKF) of the Ministry of Finance, Febrio Nathan Kacaribu, said that the form of realization of the national economic recovery program (PEN) which is still low is business incentives.
PEN disbursed business incentives amounting to IDR 120.61 trillion. The details, PPh 21 DTP amounting to IDR39.66 trillion, PPh 22 import exemption of IDR14.75 trillion, reduction of PPh 25 installments of IDR14.4 trillion, preliminary VAT refunds of IDR5.8 trillion, and other stimuli of IDR26 trillion
Febrio said that the business incentive program budget is the most difficult to realize. Now, the realization has only reached Rp. 16.2 trillion or 13 percent.
"Business incentives such as tax incentives are a bit difficult because there will be a lot of redesign. The program that doesn't work will be redesigned so that the money can go into the pockets of the community," Febrio said in a virtual discussion, Tuesday, July 28.
Febrio admitted that the government must do better in terms of outreach to the public so that they understand what kind of business incentive program is currently running.
"This is a technical problem that we are fixing. Hopefully, we change the design to a better one. So that more money will reach the pockets of the working class people whose income is below 200 million," said Febrio.
The government also has various programs which are run under PEN. The program is social protection of IDR 203 trillion. Until now, the budget realization has reached IDR78.12 trillion or around 38.31 percent.
This program contains the distribution of social assistance such as groceries and direct cash assistance, pre-work cards, electricity discounts, and the family hope program (PKH).
"For social protection, the program is a monthly transfer. This is the most effective part of the program. Whether it will reach 100 percent, the direction is to approach it until the end of the year because this is a monthly transfer," he explained.
In addition, there are sectoral programs of the ministries of institutions and local governments amounting to Rp.106.11 trillion and only Rp.6.97 trillion has been absorbed. Then, UMKM with a budget of Rp. 123.47 trillion and a realization of Rp. 30.21 trillion. Meanwhile, corporate financing with a budget of Rp. 53.57 trillion has not yet been realized.
"Regarding corporate financing, the majority is in the form of PMN to BUMN. Currently it is being prepared, hopefully in the future it will be realized soon. We are not too worried about realization problems," he concluded.