Sri Mulyani: The Period Of Social Assistance And Free Electricity Program Is Extended

Minister of Finance, Sri Mulyani. (Photo: Setkab)

JAKARTA - The government through the Ministry of Finance will extend social assistance (bansos) during the coronavirus pandemic or COVID-19 until the end of this year. Not only that, the government will also extend the free electricity subsidy until September. This is done to maintain people's purchasing power.

Finance Minister Sri Mulyani said, from the consumption side, the steps taken by the government to provide social assistance subsidies to the poor and vulnerable people more broadly to prevent the decline in consumption, which has seen a sharp decline.

Sri Mulyani said, the social assistance program at the time of the spread of COVID-19 had been implemented by the government, starting from the family hope program (PHK) to the pre-employment card.

"Jabodetabek Bansos and non-Jabodetabek cash Bansos are given nine months until December," he said, in a video conference with journalists, Monday, May 18.

Initially, the central government provided social assistance in the form of basic necessities with a value of Rp. 600,000 for the Jabodetabek area, which was given from April to June. Meanwhile, non-Jabodetabek areas are given cash with the same value.

Sri Mulyani explained, the social assistance will be extended. However, the amount that will be received by the community will experience changes.

"For July to December it is Rp. 300,000 thousand per month from Rp. 600,000 thousand per month," he explained.

According to Sri Mulyani, the provision of social assistance does not substitute for consumption but is expected to be able to maintain it at a level that meets the needs of the community.

Free Electricity Until September

Sri Mulyani said that the government would extend the electricity subsidy to poor customers, namely users of 450 VA and 900 VA. Initially, subsidies were given from three months to six months.

According to Sri, the purpose of extending this subsidy is to ease the burden on society in the midst of the COVID-19 pandemic.

"The electricity subsidy for 450 VA is 24 million and 900 VA is 7.2 million households, whose subsidies from April to June are extended to September," he said.

Thus, the free electricity stimulus was extended to six months for both 450 VA and 900 VA customers. The additional budget is Rp.6.9 trillion, so that the total budget for electricity subsidy for the underprivileged until September 2020 reaches Rp.61.69 trillion.