During The Pandemic Of Sedut Rp1,600 Trillion, Sri Mulyani: Can Make Two IKNs

Minister of Finance Sri Mulyani (Photo: Capture the screenshot of the Coordinating Ministry for the Economy's Youtube)

Minister of Finance (Menkeu) Sri Mulyani said that the government must spend a large amount of money when dealing with the COVID-19 pandemic, especially in early 2020.

According to him, significant changes occur in the structure of state spending and income, so it requires responsive and fast policies.

"Shopping has increased dramatically to deal with health problems and protect the public. On the other hand, our income has dropped due to the lack of community activities due to restrictions on mobility," he said at the National Coordination Meeting for the Transition of Handling COVID-19 and National Economic Recovery, Thursday, January 26.

The Minister of Finance explained that the 2020 State Budget before the pandemic was designed with a budget deficit of IDR 307 trillion or equivalent to 1.76 percent of gross domestic product (GDP) with a financing requirement of IDR 741 trillion.

"Once hit by the pandemic, in June we implemented Perpu No. 1/2020 and Law No. 2/2020 allowed the deficit to increase. At that time it rose to 5.07 percent of GDP or Rp. 852 trillion with financing of Rp. 1,439 trillion," he said.

Sri Mulyani explained, in August the budget draft was deemed insufficient.

On that basis, the government then changed the posture of the state budget based on Presidential Decree 72/2020.

It was stated that the deficit soared to IDR 1,039 trillion or equivalent to 6.34 percent of GDP.

This situation then helped raise the need for financing which soared to Rp1,645 trillion.

"This means that there is an increase in financing of around Rp900 trillion (from the initial design of the APBN). This is the same as obtaining (building) the two capital cities of the archipelago (IKN), sir," I said when telling the President, "said the Minister of Finance.

For information, in the 2020-2022 period, the government specifically allocates a budget for handling the pandemic in the National Economic Recovery (PEN) program.

In the 2020 PEN, the total budget provided is IDR 695.2 trillion with a realization of IDR 579.7 trillion or 83.4 percent.

Meanwhile, PEN 2021 absorbed IDR 658.6 trillion or 88.4 percent of the ceiling of IDR 744.7 trillion.

Meanwhile, the 2022 PEN was realized IDR 579.7 trillion, equivalent to 83.4 percent of the total budgeted funds of IDR 695.2 trillion.