Gov’t to Implement National Economic Recovery Program
Date 3 Juni 2020
In a bid to recover the severely hit public health and economic sectors, the Indonesian Government aims to implement the National Economic Recovery (PEN) Program.
“This national economic recovery program is an extraordinary measure as referred to in Government Regulation in Lieu of Law (Perppu) Number 1 of 2020 which is now (stipulated as) Law No. 2 of 2020,” Minister of Finance Sri Mulyani Indrawati stated after a limited meeting on the establishment of National Economic Recovery Program and determination of the 2020 State Budget posture, Wednesday (3/6).
After the stipulation, the Minister said, some government regulations on the state budget support in the handling of Covid-19 pandemic have been issued, such as Presidential Regulation Number 54 of 2020 which contains the revision of the state budget posture.
During the limited meeting, President Joko “Jokowi” Widodo stated that Presidential Regulation Number 54 of 2020 will be revised to accommodate the national economic recovery programs.
According to the Minister, this Presidential Regulation focuses on the health sector, social assistance, as well as economic and finance.
The Government also issued Government Regulation Number 23 of 2020 on the national economic recovery.
Sri Mulyani stated that there are four modalities and state expenditure which are the state budget instruments to support national economic recovery, namely inclusion of state capital, government fund allocation for banks, government investment, and guarantees as well as state expenditures aimed at maintaining and restoring the national economy affected by COVID-19 pandemic.
Furthermore, the Minister conveyed that decision-making process for the establishment of the national economic recovery program and the revision of Presidential Regulation Number 54 of 2020 was carried out through a consultation process both within the government through government institutions meetings and with the House of Representatives. “Even though the House is on a recess period, we got permission to consult through the House leadership with the Budget Committee and Commission XI. Therefore, their input is also included in this national economic recovery design,” she stated. (TGH/EN)
Translated by: Fairuzzamani Inayatillah
Reviewed by: Mia M. Bonaedy