The Ministry Of PUPR Reallocates A Budget Of IDR 24.53 Trillion To Strengthen Infrastructure For Handling COVID-19

Hospital on Galang Island. (Photo: Ministry of PUPR)

JAKARTA - The central government has asked ministries / agencies and local governments to cut unnecessary budgets and reallocate them for handling the corona virus or COVID-19. One of them, the Ministry of Public Works and Public Housing (PUPR).

PUPR Minister Basuki Hadimuljono admitted that he had reallocated and refocused the budget for handling COVID-19. From the 2020 Ministry of PUPR's Budget Implementation List (DIPA) which amounted to IDR 120 trillion, agencies reallocated a budget of IDR 24.53 trillion.

"We were assigned by the Minister of Finance to relocate IDR 24.53 trillion from the PUPR Ministry's 2020 budget of IDR 120 trillion," he said, in a video conference with journalists, in Jakarta, Tuesday, April 7.

Basuki explained, the budget savings of Rp. 24.53 trillion came from five posts. First, optimization of non-physical activities that can still be postponed or saved.

"Then, the savings on the allocation of official travel and meeting packages are cut by 50 percent of the remaining budget that has not been absorbed in the 2020 Fiscal Year," he said.

Third, continued Basuki, the cancellation of contractual packages that had not yet been auctioned, such as dams. Fourth, recomposition of the 2020 budget allocation in a multi-year contract (MYC) activity package.

Then, continued Basuki, PUPR changed the Single Year Contract packages in the 2020 Fiscal Year into multi-year packages (MYC), including contractual packages of less than IDR 100 billion.

PUPR Activity Focus

Basuki explained that he was not only carrying out his duties to reallocate the budget. PUPR also implements activity refocusing or rearranges the focus of activities.

"For refocusing activities amounting to Rp1.66 trillion," he said.

The funds, said Basuki, would be used for various activities to prevent the spread of COVID-19. PUPR will carry out five focuses. First, to maintain people's purchasing power, especially in rural areas and to handle infrastructure facilities to deal with COVID-19.

PUPR Minister Basuki Hadimuljono and President Joko Widodo visited the hospital on Galang Island. (Photo: Ministry of PUPR)

"An example is the construction of an observation shelter facility on Galang Island along with the equipment around Rp400 billion," he said.

Second, continued Basuki, renovating the Kemayoran Athlete Hospital Emergency Hospital which requires funds of around Rp160 billion. Third, the addition of 4,000 locations for the P3TGAI labor-intensive program and the elimination of 4 percent PPh of Rp. 978 billion.

Fourth, said Basuki, his party also purchased materials and painting road markings for Rp25 billion, for the production of 800 tons.

"Then the farmers' purchase of rubber as a mixture of rubber asphalt is Rp. 100 billion," he said.