Gov’t Issues Regulation on Budget Reallocation Amidst Coronavirus Outbreak
Infrastructure sector in the 2020 State Budget before the enactment of Presidential Instruction Number 4 of 2020. (Photo by: kemenkeu.go.id)
President Joko “Jokowi” Widodo has issued Presidential Instruction (Inpres) Number 4 of 2020 on Refocusing Programs, Budget Reallocation, and Procurement of Goods and Services.
(Link: https://jdih.setkab.go.id/puu/buka_puu/176075/Inpres_Nomor_4_Tahun_2020.pdf)
The Regulation aims to create rapid, precise, focused and integrated measures amidst the COVID-19 outbreak.
In the Presidential Instruction, the President instructs Cabinet Ministers, Cabinet Secretary, Presidential Chief of Staff, Commander of the Indonesian National Defense Forces (TNI), Chief of the Indonesian National Police (Polri), Attorney General, Heads of Non-Ministerial Government Institutions, Heads of Secretariat of State Institutions; Governors and Regents/Mayors to conduct the following measures:
FIRST: to prioritize the use of existing budget allocations for activities that accelerate the handling of COVID-19 (Refocusing activities and budget reallocation) by referring to the COVID-19 handling protocol in the Ministries/Institutions/Regional Governments and operational plans to accelerate the handling of COVID-19 planned by the Task Force for COVID-19 Handling Acceleration.
SECOND: to accelerate refocusing of activities and reallocation of budgets through the mechanism of budget revision and to immediately submit proposals for budget revisions to Minister of Finance in accordance with respective authority.
THIRD, to accelerate the implementation of procurement of goods and services to support the acceleration of handling COVID-19 by facilitating and expanding access in accordance with Law Number 24 of 2007 on Disaster Management, Government Regulation Number 21 of 2008 on Implementation of Disaster Management, Government Regulation Number 22 of 2008 on Funding and Management of Disaster Relief, Presidential Regulation Number 16 of 2018 on Procurement of Government Goods and Services, and Presidential Regulation Number 17 of 2018 on Implementation of Disaster Management in Specific Conditions.
FOURTH: to conduct procurement of goods and services to accelerate handling of COVID-19 by involving the National Public Procurement Agency (LKPP) and the Development Finance Comptroller (BPKP).
FIFTH: to conduct procurement of goods and services for medical devices for handling COVID-19 in accordance with standards stipulated by the Ministry of Health.
SIXTH, specific instruction for:
- Minister of Finance: to facilitate the budget revision process that is fast, simple, and accountable.
- Minister of Home Affairs: to take further measures in the framework of accelerating the use of Regional Revenue and Expenditure Budget (APBD) and/or to amend the Regional Head’s regulation regarding the elucidation of the APBD to accelerate the handling of COVID-19.
- Minister of Public Works and Public Housing: to accelerate the preparation and construction of infrastructure needed in the context of handling COVID-19.
- Minister of Health: to accelerate provisions of medical devices for handling COVID-19 which have not got a registration number in accordance with provisions of Laws and Regulations.
- Head of the Development Finance Comptroller (BPKP): to provide financial assistance and supervision in accordance with provisions of Laws and Regulations on state financial accountability to accelerate the handling of COVID-19.
- Head of the National Public Procurement Agency (LKPP): to assist the implementation of the procurement of goods and services in the framework of accelerating the handling of COVID-19.
“The Presidential Instruction shall come into force as of the date of its enactment,” the SEVENTH dictum of the Presidential Instruction reads. The Instruction is enacted on 20 March, 2020. (SM/UN/EN)
Translated by: Ridwan Ibadurrohman
Reviewed by: Mia Medyana
