Gov’t to Speed Up Spending on Strategic Programs
Coordinating Minister for Economic Affairs Airlangga Hartarto has reaffirmed the Government’s commitment to the recovery from COVID-19 pandemic by formulating strategy to accelerate spending on strategic programs.
“I and the Ministers under the coordination of Coordinating Ministry for Economic Affairs have discussed matters related to strategies to accelerate spending on strategic programs, so that the Indonesian economy this year would record positive growth,” the Coordinating Minister said during the Ministerial Coordination Meeting (RKTM) on Friday (21/8) in Nusa Dua, Bali.
Strategic programs and economic policies in handling the impact of the COVID-19 pandemic are discussed during the meeting, including acceleration of the Government spending and short-term strategic programs to accelerate budget realization.
Airlangga said that the acceleration of Government spending will boost economic growth in the third quarter of 2020 and economic growth in 2020.
“We also prepare a monitoring and evaluation system to speed up the spending,” the Coordinating Minister said.
The planned programs include (i) National Economic Recovery (PEN) loans for regions regulated by Minister of Finance Regulation number 105/2020; (ii) Additional Regional Incentive Fund (DID) for the PEN Program; (iii) Cash for Work Program for Community Oil Palm Plantation Restoration; (iv) Development of digital villages and digital Micro, Small and Medium Enterprises (MSMEs); (v) Additional quota for the Pre-Employment Card Program allocation; (vi) programs to promote traditional market; and (vii) Cash for Work Program in National Strategic Projects (PSN).
In the meantime, a number of Ministries and Institutions also submitted several plans, namely: (i) program to promote Indonesian products; (ii) program to purchase rubber for asphalt 2020-2021; (iii) program to purchase small and medium industry raw material; (iv) discount for MSMEs products; (v) program to promote community products through state-owned pawnshop PT Pegadaian; and (vi) cash for work program for tourism.
The programs are expected to support the economic recovery and give a significant impact for employment as well as for the economic growth.
“In terms of food and agriculture, the Government has succeeded in achieving 2.19% year on year growth of Gross Domestic Product of the agricultural sector in the second quarter of 2020,” Airlangga said.
The development of a food estate in Central Kalimantan is also underway. This food estate aims to provide a modern and sustainable food production system in order to strengthen food security and improve farmer welfare.
In order to provide positive sentiment to investors and accelerate the process of economic recovery, from the commercial and industrial aspects, the Government also continues to provide various investment facilities in the form of taxation and non-taxation facilities.
Airlangga also said that the Government continues to reduce barriers to imports of raw/auxiliary materials, especially for export-oriented industries to boost export and import activities.
To help the MSMEs sector, the Government has accelerated the distribution of productive assistance funds for MSMEs and super-soft loans of super-micro credit for laid-off workers and housewives who are doing business activities.
“The acceleration of the distribution of working capital assistance and soft loans will accelerate the recovery of micro-businesses and help the laid off workers,” Airlangga said.
In terms of research and innovation, the Government will cooperate with State-Owned Enterprises (BUMN) and private companies in the pharmaceutical sector. The measure aims to provide greater quantities of vaccines as soon as possible.
Airlangga went on to say that for the 2020-2024 period, part of the National Strategic Project (PSN) will be carried out with cash for work program that employ 209,139 workers. The projects include construction of dams, irrigations, toll roads, water supply, sanitation, airports, ports, railways and regional infrastructure sectors.
Regarding international economic cooperation, the Government is working with the United Arab Emirates and South Korea to implement the Travel Corridor Arrangement (TCA).
For the record, the TCA is a short visit facility for the essential business and diplomatic sector who will continue various bilateral investment and business cooperation projects. The TCA also takes into account the health protocols in the midst of COVID-19 pandemic.
“Currently, the Government of Indonesia is discussing the TCA agreement with the People’s Republic of China,” Airlangga said. (PR of Coordinating Ministry for Economic Affairs/EN)
Translated by: Ridwan Ibadurrohman
Reviewed by: Mia Medyana