Government Increases Aid Budget Of IDR 55.21 Trillion Along With Extension Of Emergency PPKM

JAKARTA – The government's decision to extend the Emergency Community Activity Restrictions (PPKM) period at least until July 26 has also affected the state budget.

President Joko Widodo (Jokowi) said the government had prepared an additional budget of up to tens of trillions as a cushion to minimize the negative impact of the restrictions on mobility.

"To ease the burden on the affected communities, the government has allocated an additional Rp55.21 trillion in the social protection budget (perlinsos)," he said in a press conference broadcast virtually, Tuesday, July 20.

The President added that the funds are planned to be distributed in a number of forms, namely social assistance, basic food assistance, internet quota assistance for students, and electricity subsidies.

Not only that, the Head of State also emphasized that the government is ready to provide business incentives for the small segment.

"The government also provides incentives for informal micro-enterprises in the amount of Rp. 1.2 million for around 1 million micro-entrepreneurs," he said.

On that occasion the President also said that he had given directions to the ministers and related officials to immediately execute this social protection assistance.

"I have ordered the relevant ministers to immediately distribute the social assistance to eligible citizens," he said.

To note, the addition of the social security budget of Rp. 55.21 trillion is included in the National Economic Recovery (PEN) scheme in the 2021 State Budget as a response to the increase in daily cases of COVID-19 in the country.

The total PEN funds will also change, where the PEN budget that has been reported to the Indonesian House of Representatives reached Rp. 699.43 trillion and will increase by Rp. 744.75 trillion as of July 16, 2021. This additional budget will be funded by refocusing and reallocating the budget.