PEN Budget Still Remaining RIDR 220 Trillion, Sri Mulyani Encourages Ministry And Institutional Expenditure Absorption

Illustration (Photo: Doc. Antara)

JAKARTA - Minister of Finance, Sri Mulyani, said that the budget allocation for the 2021 National Economic Recovery (PEN) program was still quite large. According to the Minister of Finance's notes, as of December 10, the realization of this year's PEN funds amounted to IDR 519.69 trillion or 69.8 percent of the IDR 744.77 trillion ceilings.

“This means that in the next three weeks we will have to spend around IDR 220 trillion and this is a very large expenditure. So this week we will see if all the economic programs of ministries and institutions as well as regions can carry out what has been allocated", she said through the virtual Bisnis Indonesia channel, Wednesday, December 15.

The Minister of Finance added that the impetus to immediately spend the budget also has a strategic role in raising the economic growth rate ahead of the close of the year.

“And this will greatly determine the momentum of our economic recovery in the fourth quarter. The last weeks of this month will be very busy for the government to be able to complete its programs”, she said.

Furthermore, the state treasurer emphasized that the direction of the 2022 policy would remain focused on efforts to recover the economy accompanied by efforts to control COVID-19 in a controlled manner. It is hoped that the achievement of communal immunity in the community can be achieved immediately so that economic activity is not too fragile in the event of a shock caused by the increase in daily cases.

"If this (immunity) is achieved, we can continue to increase economic activity. This kind of resilience is important, as well as ensuring that the government will continue to assist the most vulnerable people", she said.

To note, the absorption of PEN, which has only touched IDR 519.69 trillion, is spread across five main clusters, namely health with a realization of IDR 143.29 trillion, social protection (Perlinsos) IDR 152.18 trillion, support for MSMEs and corporations of IDR 77.73 trillion. Then, the priority program cluster is IDR 83.64 trillion, and the business incentive cluster is IDR 62.86 trillion.