Ministry Of Finance Clarifies The News About The Increase In Handling Costs For COVID-19 Up To IDR 905.2 Trillion

Minister of Finance Sri Mulyani (Source: Kemenkeu.go.id)

JAKARTA - The Ministry of Finance straightens out the news that says the cost of handling COVID-19 in Indonesia has soared to IDR 905.2 trillion. He emphasized that the cost of handling COVID-19 has indeed changed from Rp. 677 trillion to Rp. 695.2 trillion.

Yustinus Prastowo, the Minister of Finance's Special Staff for Strategic Communications, said that along with the increasing need to deal with the impact of health, social security and business stimulus, the government plans to make adjustments to the cost of handling COVID-19 to Rp.695.2 trillion instead of Rp. 905.2 trillion.

"Complementing the statement on the social media account of the Minister of Finance, Mrs. Sri Mulyani, we convey that the government continues to prepare and carry out comprehensive measures to deal with the impact of the COVID-19 pandemic," he said in a written statement received by VOI, Saturday, June 19.

As for the details of the budget, namely IDR 87.55 trillion for the health budget, IDR 203.9 trillion for social protection, IDR 120.61 trillion for business incentives, IDR 123.46 trillion for the MSME sector, IDR 53.57 trillion for corporate financing, and sectoral support for K / L and Regional Government of IDR 106.11 trillion.

"In other words, there is an increase in financing needs estimated at Rp905.2 trillion, from Rp741.8 trillion to Rp1,647.1 trillion," he said.

Yustinus explained that this change was intended to absorb the dynamic needs of the community and anticipate the impact of the pagebluk, and continue to be discussed internally in the government and together with the Budget Agency and Commission XI of the House of Representatives. The final amendments will be outlined in the revision of Presidential Decree Number 54 of 2020.

"As a consequence of the additional costs to deal with COVID-19, the 2020 state budget deficit is estimated to widen, from the original deficit of 1.76 percent or Rp. 307.2 trillion to Rp. 5.07 trillion or Rp. 852 trillion in Presidential Decree Number 54 of 2020, and The new deficit is estimated at 6.34 percent or IDR 1,039.2 trillion, ”he explained.

According to Yustinus, the government, through the Ministry of Finance, continues to be committed to observing any changes that occur, absorbing and listening to public aspirations, and discussing plans and steps to be taken with all stakeholders.

Furthermore, he emphasized, the 2020 State Budget will certainly be formulated and implemented in a credible, transparent and accountable manner, and will be dedicated to the interests of the people.

"Support, input and criticism from all elements of society is very beneficial for the implementation of better public services and handling of the pandemic," he said.