Realization Of PEN Fund Translates To IDR123 Trillion Until April 1, 2021

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - The government through the Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed that the realization of the National Economic Recovery (PEN) program had cost no less than IDR 123.26 trillion until April 1, 2021.

This achievement is equivalent to 17.6 percent of the total 2021 PEN funding allocation amounting to Rp699.43 trillion.

"Indonesia's struggle to restore health and revive the economy from the Covid-19 pandemic continues," he said in a webinar, Wednesday, April 7.

Airlangga added that the 2021 trip would be a year full of challenges and opportunities, as well as a year of national and global economic recovery.

"This is the right time to return to work, develop a business, and be optimistic about taking advantage of opportunities," he said.

Meanwhile, another big agenda called Airlangga is structural reform through Law 11/2020 concerning Job Creation. According to him, the Job Creation Law will be a bridge between the COVID-19 mitigation program and long-term structural reforms.

He also said that the government had formed an Investment Management Institution (LPI), and issued a policy to reduce the corporate income tax rate to accelerate economic recovery.

"To stimulate the demand of the middle class, the government has also provided incentives for sectors that have a large multiplier effect on the economy, namely automotive and property," he said.

To note, this year's PEN budget is much bigger than 20 percent of the realization throughout 2020 which was recorded at IDR 579.78 trillion.

In the allocation, the budget is distributed to five priority sectors, namely health Rp. 176.3 trillion, social protection Rp. 157.4 trillion, support for MSMEs and cooperatives Rp. 184.8 trillion. Then, Rp. 58.4 trillion in business incentives, and Rp. 122.4 trillion for priority programs.