Economic Recovery Should Prevent Moral Hazard, President Jokowi Says

President Jokowi delivers remarks during a Limited Meeting on Tuesday (2/6) (Photo: Agung/PR)

Economic recovery programs must be carried out prudently, transparently, accountably and be able to prevent moral hazard risks, President Joko “Jokowi” Widodo has said.

“For that matter, I have ordered the Attorney General, the Financial and Development Supervisory Agency (BPKP), the Government Goods / Services Procurement Policy Agency (LKPP) to assist those programs. Furthermore, the Government may also ask the Corruption Eradication Commission (KPK) to strengthen the prevention system,” the President said  during a limited meeting, Tuesday (2/6).

Regarding changes in the State Budget posture this year, the President said he had received a report stating that various developments in COVID-19 handling and strategic steps for economic recovery have brought consequences of additional spending that has widened the State Budget deficit.

To that end, the President said he had ordered Coordinating Minister for Economic Affairs, Minister of Finance and Minister of National Development Planning Agency to make more accurate and detailed calculations against various fiscal risks.

“Let me once again emphasize that changes in the State Budget posture must be carried out prudently, transparently, and accountably so that the 2020 State Budget can be maintained, trusted, and remains credible,” the President said. (TGH / EN)

Translated by: Estu Widyamurti
Reviewed by: M. Ersan Pamungkas