Ministries/Institutions to Increase Expenditure Execution in Anticipating Coronavirus Impact to Economy
Date 11 Februari 2020
President Joko “Jokowi” Widodo called on all Ministries/Government Institutions to anticipate the spread of coronavirus which could potentially affect global economy, particularly the economy of the People’s Republic of China, and other countries in Asia including Indonesia.
The statement was quoted by Minister of Finance Sri Mulyani in a press release after attending a Plenary Cabinet Meeting on the Anticipation of Global Economic Impact at the Bogor Presidential Palace, West Java Province, Tuesday (11/2).
“The situation is different from when the SARS outbreak (in 2012) because the current China’s economy grows exponentially,” the Minister said.
Once the spread of coronavirus significantly affected the China’s economy, she added, it will also bring impact to global economy. Therefore, President Jokowi urged ministries/institutions to make several measures in protecting Indonesia’s economy and stimulating the economic growth.
“Several sectors have been affected including tourism sector and industrial sector. Thus, all ministries/institutions must use state expenditure budget to support tourism sector,” Sri added.
In addition, the President also asked his Cabinet to study some incentives and subsidies given to domestic flights to increase the number of domestic tourists and their spending to support tourism sector.
The Minister went on to say that she had reported the Cabinet on the disbursement of state budget as of 10 February 2020. Several expenditures including goods and capital expenditures are increased.
“Ministry of Public Works and Public Housing in February has been executing considerable capital expenditure. It is one of several strong indications,” she firmly said.
The Ministry of Finance also called on all ministries/institutions to accelerate the execution of expenditure considered directly affected the people, namely the Village Funds.
“As of 10 February, Rp586 billion of Village Funds was disbursed to more than 1,490 villages,” the Minister said adding that the figure is higher than that of last year which was at Rp317 billion.
Sri also confirmed that she, Minister of Education and Culture, as well as Minister of Village, Development of Disadvantaged Regions, and Transmigration will disburse Village Funds to school bank accounts to fund operational cost of schools and to village bank accounts.
“So that the benefit of state budget can be felt directly by the people and is circulated to boost national economy,” Sri Mulyani stated.
The Minister mentioned that Rp7 trillion out of Rp29 trillion of budget allocated for Aspiring Family Program (PKH) has been disbursed. On the other hand, ministries/institutions have executed Rp30.9 trillion of expenditure as of 31 January 2020 which is consisted of Rp3.3 trillion of good expenditure, Rp1.9 trillion of capital expenditure, Rp13.2 trillion of social assistance expenditure, and Rp12.5 trillion of personnel expenditure. The aforementioned expenditures can be accelerated to boost the national economy. (FID/EN)
Translated by : Rany Anjany
Reviewed by : Yuyu Mulyani