Ministry Reallocates Rp44.58 Trillion for COVID-19 Mitigation
Date 22 April 2020
Ministry of Public Works and Public Housing undertakes budget reallocation and program refocusing to the 2020 budget in order to accelerate the handling of COVID-19 pandemic.
From the initial budget execution lists (DIPA) 2020 amounting Rp120.2 trillion, Rp44.58 trillion was allocated, so that the current budget of the Ministry reaches Rp75.63 trillion.
The measure, – which is based on approval in a Plenary Cabinet Meeting dated 14 April and Circular of Minister of Finance No.S-302/MK.02/202 dated 15 April on Adjustment to 2020 Budget for Ministries/Institutions-, is a follow up of Presidential Instruction Number 4 of 2020 on Refocusing Programs, Budget Reallocation, and Procurement of Goods and Services for COVID-19 Handling Acceleration and Presidential Regulation Number 54 of 2020 on Revision of Posture and Details of the State Budget 2020.
Minister of Public Works and Public Housing Basuki Hadimuljono asserted that 50 percent of budget posts for official trips and meeting in the Ministry is reallocated. In addition, contracts that have not went for tender will be held in the upcoming year.
“Implementation of programs that delayed in the 2020 budget year due to COVID-19 pandemic will be prioritized in 2021, while the tender process to start in October 2020,” the Minister said in a virtual working meeting with the House of Representatives Commission V, Tuesday (21/4).
The Minister went on to say that budget reallocation is also sourced from programs which the contracts are changed from single year to multi years, such as dam, road, and bridge construction programs.
Aside from budget reallocation, the Ministry also undertakes program refocusing with a total budget of Rp1.829 trillion. The budget will be prioritized to fund emergency programs such as the construction of observation/isolation/quarantine facilities in Galang Island, rehabilitation of COVID-19 emergency hospital in Wisma Atlet (Athlete Village), development of Gadjah Mada University Hospital as a referral hospital for COVID-19 patients, and for the mitigation of COVID-19 in the Ministry.
On that occasion, the Commission V and the Ministry have agreed to accelerate the realization of Cash Labor-intensive Program or People-based Infrastructure Program. For the record, budget allocated for Cash Labor-intensive Program in 2020 reaches Rp10.22 trillion in which the program aims to increase people’s purchasing power, reduce unemployment rate particularly in rural areas.
“In program refocusing, the Ministry also purchases 800 tons of resin produced by state-owned forestry company Perhutani to paint road markings, purchases rubber from farmers in Lampung, South Sumatra, Jambi, East Kalimantan, South Kalimantan, and West Kalimantan for asphalt mixture. In addition, the Ministry also provides housing stimulus in form of Interest Gap Subsidy (SSB) and Down Payment Subsidy (SBUM) to 175,000 households. The budget reallocation and program refocusing including labor-intensive program will be further consulted with the Chairperson of Commission V,” he added. (Ministry of Public Works and Public Housing/EN)
Translated by : Rany Anjany S
Reviewed by: Mia Medyana