Sri Mulyani Claims That The Implementation Of The 2020 State Budget Is Effective In Reducing Poverty And Unemployment

Illustration (Photo: Doc. Antara)

JAKARTA - The government through the Minister of Finance, Sri Mulyani, said that the implementation of the 2020 State Revenue and Expenditure Budget (APBN) was successful in curbing the rate of poverty and unemployment throughout last year.

In her presentation at the House of Representatives of Plenary Meeting today, the Minister of Finance said that the COVID-19 Handling and National Economic Recovery Program (PC-PEN) paid great attention to social protection for the most vulnerable groups of people.

"The PC-PEN Social Protection Program for the 2020 period has been able to withstand spikes in poverty and unemployment, as well as maintain the momentum of economic growth to the positive zone", she said at the Senayan parliament complex, Jakarta, Thursday, July 15.

In the Minister of Finance's note, the open unemployment rate could be held at the level of 7.07 percent although it increased compared to 2019 at 5.23 percent.

Then, the poverty rate that can be maintained is no more than 10.19 percent in 2020 even though it is an increase from the achievement in 2019 which can be reduced to 9.22 percent.

On the other hand, the pandemic also caused the Gini ratio to slightly increase to 0.385, compared to 2019 of 0.380.

Nevertheless, the Human Development Index (HDI) throughout 2020 can still be increased to 71.94 compared to 2019 at 71.92.

"This is a result of various implementations of the PC-PEN 2020 Program which is so responsive to the shocks of the pandemic", she said.

Furthermore, the state treasurer revealed that based on survey results from various institutions, such as TNP2K, LPEM FEB UI, the Demographic Institute, and even the World Bank, it showed that social protection programs had succeeded in restraining deterioration, and maintaining resilience in the midst of extraordinary pressure.

"The target accuracy, which was initially still lacking, is considered to be improving with the increase in financial inclusion of recipients, as well as the impact of increasing competence through the Pre-Employment Card program, quota subsidies and electricity discounts are also utilized and provide extraordinary support for the community", said Minister of Finance.

Broadly speaking, the implementation of the 2020 State Budget recorded a deficit of IDR 947.6 trillion.

The deficit occurred due to lower state revenues last year which amounted to IDR 1,647.7 trillion compared to state expenditures which reached IDR 2,595.4 trillion.