Gov’t Provides Rp 677.2 Trillion for COVID-19 Handling
Date 3 Juni 2020
Minister of Finance Sri Mulyani Indrawati has said that the Government provides Rp677.2 trillion for COVID-19 handling. The provision will be stipulated in the amendment to Presidential Regulation Number 54 of 2020.
The Minister explained that the funding will be provided for the following sectors:
First, health sector, with the budget of Rp87.55 trillion.
“This includes expenses for handling COVID-19, medical personnel, death benefits, contribution allowance for national health insurance, Task Force funding, and tax incentives in the health sector,” the Minister said after attending a Limited Cabinet Meeting on Wednesday (3/6).
Second, social assistance.
“It covers Family Hope Program (PKH), staple food, social assistance for Jabodetabek (Jakarta, Bogor, Depok, Tangerang, Bekasi) residents and non-Jabodetabek residents, Pre-Employment Card, electricity bill discounts, logistics for staple food, and Village Fund cash assistance. The budget is Rp203.9 trillion,” Sri explained.
Third, support for MSMEs in the form of interest subsidies, placement of funds for restructuring, and working capital for MSMEs with the budget of Rp123.46 trillion.
Fourth, incentives for business sector.
The incentive, the Minister added, aims to support the survival of businesses sector by providing tax relaxation and other stimulus amounting to Rp120.61 trillion.
Fifth, financing sector and cooperatives.
“This includes state capital injection, emergency work capital for non-MSMEs labor intensive sector, and spending on risk premium for working capital loans for labor-intensive industries whose loans are above Rp10 billion to Rp1 trillion, including guarantees for several State-Owned Enterprises, and bailouts. The budget is Rp44.57 trillion,” the Minister said.
Sixth, support for several sectors and Government Ministries/Institutions and local governments, with the budget of Rp97.11 trillion. (TGH/EN)
Translated by: Ridwan Ibadurrohman
Reviewed by: Mia Medyana