Press Gejolak Price, Regional Government Asked To Immediately Design The Distribution Of Social Assistance From Mandatory 2 Percent

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA - The Ministry of Finance has asked all local governments (Pemda) to immediately design a social assistance distribution scheme (bansos) from the mandatory 2 percent General Transfer Fund (DTU).

Deputy Minister of Finance (Wamenkeu) Suahasil Nazara said the policy was a mandatory directive for social protection spending as stated in Minister of Finance Regulation (PMK) Number 134/PMK.07/2022 concerning Mandatory Expenditures in the Context of Handling the Impact of Inflation for Fiscal Year 2022.

"This is a form of fiscal policy synergy between the APBD and the APBN," he said at the Regional Inflation Control Team Coordination Meeting (TPID), quoted on Tuesday, September 6.

According to Suahasil, the amount of 2 percent of DTU is calculated at the distribution of the General Allocation Fund (DAU) from October to December 2022 and the distribution of Revenue Sharing Funds (DBH) for the fourth quarter of the 2022 period.

"Therefore, this September is the right time to design the budget, program design, and this is a form of mandatory social protection expenditure which is the earmarking of the General Transfer Fund in the form of DAU and DBH whose use is not determined," he said.

The mandatory social protection spending on the APBD is used for social assistance, including for motorcycle taxis, MSMEs, and fishermen, job creation, and public transportation subsidies.

"We hope that with this provision and later the right program, inflation or price of goods and services does not need to increase too fast. If it is given to the transportation sector, hopefully the increase in fuel prices will not necessarily increase to an increase in transportation costs in the regions," he explained.

The Sri Mulyani representative hopes that if public transportation and small and micro business sectors can be provided with adequate assistance, then the prices of goods and services do not need to rise too high.

"However, if there is an increase in prices, then the group of people who are the most vulnerable, the most vulnerable, at least we can also provide additional social support assistance from BLT (Direct Cash Assistance) and from BSU (Wage Subsidy Assistance)," he said.

In addition to mandatory social protection spending from DTU, the government provides BBM Direct Cash Assistance (BLT) of IDR 150,000 for 20.6 million beneficiary families for 4 months, namely September to December, which is given twice IDR 300,000 each. This assistance will be distributed by the Ministry of Social Affairs.

Then, the Wage Subsidy Assistance (BSU) was also given to 16 million workers who had a maximum salary of IDR 3.5 million per month of IDR 600,000. This assistance will be distributed by the Ministry of Manpower.