Gov’t Revises 2020 State Budget
Date 30 Juni 2020
In a bid to ensure that the State Budget can be used to meet the needs in fighting the COVID-19 pandemic and/or to maintain the national economy and/or financial stability system from several threats, it is deemed necessary to revise posture and details of the State Budget 2020.
For that reason, President Joko “Jokowi” Widodo on 24 June 2020 signed Presidential Regulation Number 72 of 2020 on the Amendment to Presidential Regulation Number 54 of 2020 on Revision of Posture and Details of the State Budget 2020.
“In order to exercise necessary policies and measures in handling the COVID-19 pandemic and/or in facing several threats that pose danger to the national economy and/or financial stability system, the Posture and Details of the State Budget 2020 is revised,” the Presidential Regulation reads.
The Regulation covers revision of details to: a. the State Revenue Budget; b. State Expenditure Budget; c. Surplus/Deficit Budget; and d. Budget Financing.
The State Revenue as referred to in the Presidential Regulation is amounting to Rp1,699,948,459,678,000 (one quadrillion six hundred ninety nine trillion nine hundred forty eight billion four hundred fifty nine million six hundred seventy eight thousand rupiahs) which is sourced from:
- tax revenue amounting to Rp1,404,507,505,772,000 (one quadrillion four hundred four trillion five hundred seven billion five hundred five million seven hundred seventy two thousand rupiahs);
- Non-tax State Revenue amounting to Rp294,140,953,906,000 (two hundred ninety four trillion one hundred forty billion nine hundred fifty three million nine hundred six thousand rupiahs); and
- grant Rp1,300,000,000,000 (one trillion three hundred billion rupiahs).
Based on the Presidential Regulation, the State Expenditure Budget is amounting to Rp2,739,165,851,403,000 (two quadrillion seven hundred thirty nine trillion one hundred sixty five billion eight hundred fifty one million four hundred three thousand rupiahs) which consist of:
- State Expenditure of the Central Government amounting Rp1,975,240,206,353,000 (one quadrillion nine hundred seventy five trillion two hundred forty billion two hundred six million three hundred fifty three thousand rupiahs), includes additional expenditure for the handling of COVID-9 pandemic amounting Rp358,880,235,830,000 (three hundred fifty eight trillion eight hundred eighty billion two hundred thirty five million eight hundred thirty thousand rupiah); and
- Transfer to Regions and Village Funds amounting Rp763,925,645,050,000 (seven hundred sixty three trillion nine hundred twenty five billion six hundred forty five million fifty thousand rupiahs) includes additional expenditure for the handling of COVID-9 pandemic amounting Rp5,000,000,000,000 (five trillion rupiahs).
Budget Financing stipulates in the Presidential Regulation is estimated to reach Rp1,039,217,391,725,000 (one quadrillion thirty nine trillion two hundred seventeen billion three hundred ninety one million seven hundred twenty five thousand rupiahs) that consist of: a. debt financing; b. investment financing; c. loan financing; d. guarantee obligation; and e. other financing.
“If necessary, Minister of Finance may stipulate the revision to details of Posture of the State Budget 2020 as referred to in article (2), article (3), article (4), and article (5) after consulting with the President,” the Presidential Regulation reads.
Once the Presidential Regulation is in effect, all laws and regulations which are considered implementing regulations of Presidential Regulation Number 54 of 2020 on the Revision of Posture and Details of the State Budget 2020 (State Gazette of the Republic of Indonesia Number 94 of 2020) shall remain in force as long as it doesn’t contradict with this Presidential Regulation.
“This Presidential Regulation shall apply as of the date of its promulgation,” Article II of the Presidential Regulation which was stipulated by Minister of Law and Human Rights Yasonna Laoly on 25 June 2020 reads. (EN)
Translated by : Rany Anjany
Reviewed by: Yuyu Mulyani