Airlangga's Subordinates Say That The Government Will Cut The 2022 PEN Fund By More Than Half, Leaving Only IDR 321 Trillion

Illustration (Photo: Doc. Antara)

JAKARTA - The government is known to reduce the allocation of funds for the National Economic Recovery Program (PEN) for the 2022 period. This information was revealed based on an official broadcast by the Coordinating Ministry for the Economy.

"The government has provided a budget allocation (PEN) of IDR 321.2 trillion in 2022", said the Coordinating Ministry for Economic Affairs' Communications, Information Services and Conference Bureau, Haryo Limanseto, in a press statement, quoted Monday, November 22.

Just so you know, next year's PEN funds amounting to IDR 321.2 trillion have decreased by more than 50 percent compared to the 2021 allocation of IDR 744.77 trillion.

In detail, the PEN budget for next year is divided into four program clusters, namely health of IDR 77.05 trillion, public protection of IDR 126.54 trillion, priority programs of IDR 90.04 trillion, and support for MSMEs and corporations of IDR 27.48 trillion.

Interestingly, the government has decided to abolish the business incentive cluster for 2022. This means that there will be no more fiscal stimulus that can be enjoyed by the public, such as the MSME final PPh, the government abolishes PPh 21 for workers, as well as property VAT and automotive PPnBM which are borne by the government.

For information, as of November 19, 2021, the absorption of PEN funds this year is said to have reached IDR 495.77 trillion, equivalent to 66.6 percent of the ceiling of IDR 744.77 trillion.

In more detail, the health cluster has realized IDR 135 trillion from the IDR 214 trillion ceilings, the social protection cluster (perlinsos) has realized IDR 140 trillion from the IDR 186 trillion ceilings, the priority program cluster IDR 75 trillion from the IDR 117 trillion ceilings.

Then, the MSME and corporate support cluster were realized at IDR 81 trillion from the IDR 162 trillion ceilings, and the business incentive cluster at IDR 62.47 trillion from the IDR 62.83 trillion ceilings.