Gov’t to Provide Additional Social Assistance as Prices of Global Commodities Soar
Minister of Finance Sri Mulyani, accompanied by Governor of central bank Bank Indonesia Perry Warjiyo and Ministry of Social Affairs Tri Rismaharini, delivers a statement at the Presidential Office, Jakarta, Monday (08/29). (Photo by: PR of Cabinet Secretariat/Rahmat)
Following the surge in global commodity prices and the reallocation of fuel subsidy, the Government has announced it allocates Rp24.17 trillion for additional social assistance.
“The President has approved Rp24.17 trillion for additional social assistance to be disbursed starting this week. The assistance is expected to ease the people’s burden and reduce poverty,” Minister of Finance Sri Mulyani said at the Presidential Office, Jakarta, Monday (08/29).
According to the Minister, the Government will roll out three social assistance programs.
First, cash transfer (BLT) with a budget of Rp12.4 trillion and 20.65 million beneficiary families (KPM). The cash transfer will be disbursed by Ministry of Social Affairs through state postal company PT. Pos Indonesia.
Second, wage subsidy (BSU) with a budget of Rp9.6 trillion. The assistance will be disbursed by Ministry of Manpower to 16 million targeted workers with every participant receiving Rp600,000.
“The President has ordered us to provide Rp9.6 trillion assistance for 16 million workers who earn a maximum salary of Rp3.5 million monthly so every beneficiary will receive Rp600,000. Minister of Manpower will issue the technical guidelines so that the assistance can be transferred directly to the workers,” Sri Mulyani said.
Third, two percent of the General Transfer Fund (DTU), namely General Allocation Fund (DAU) and Profit Sharing Fund (DBH), will be allocated by regional governments for subsidies in transportation sector. The subsidies will be used for public transport, fishermen assistance, and additional social protection. In addition, regional governments are also obliged to take steps to maintain the people’s purchasing power.
“Ministry of Home Affairs and Ministry of Finance will issue regulations on this matter,” Sri Mulyani remarked. (DND/UN) (RI/EP)
