Remarks of President of the Republic of Indonesia on the handover of the Budget Implementation List (DIPA) and List of Budget Allocation for Regional Governments and Village Funds (TKDD) for 2021 Fiscal Year Wednesday, 25 November 2020 at the State Palace, Jakarta
Bismillahirrahmanirrahim.
Assalamu’alaikum warahmatullah wabarakatuh,
Good morning,
May prosperity be upon us all,
Om Swastiastu,
Namo Buddhaya,
Greetings of Virtue.
Distinguished Vice President of the Republic of Indonesia,
Distinguished Heads of State Institutions,
Distinguished Ministers of Indonesia Onward Cabinet,
Distinguished Governors and Regional Leaders who are present,
Ladies and Gentlemen.
We all know and feel that 2020 has been a tough year, a difficult year for us to go through. We must also face global economic uncertainty in 2021. Speed and accuracy must always become our characters in our policies, both in the health and economic sectors. These sectors must recover immediately.
Ladies and Gentlemen,
The 2021 State Budget will focus on four sectors. First, in the health sector, the budget is mainly allocated for COVID-19 management, especially vaccination program. Thus, the budget allocated for healthcare facilities and infrastructure, laboratories, and research and development is essential. Second, in the social protection sector, the budget will be provided to disadvantaged and vulnerable groups. Third, in the economic sector, the budget will be focused on supporting the Micro, Small, and Medium-sized Enterprises and businesses. Fourth, in an effort to build a stronger foundation, we will undertake structural reforms on health, education, social protection sectors, and other sectors.
In the 2021 State Budget, the Government has allocated Rp2,750 trillion, which rose by 0.4 percent compared to the expenditure spending in the 2020 State Budget. The budget allocated for ministries and institutions amounting to Rp1,032 trillion. I repeat, a total of Rp1,032 trillion allocated for ministerial and institutional spending. While Rp795.5 trillion is allocated for transfer to region and Village Funds. We will use the allocated budget to support economic recovery and development priorities in various fields. Rp169.7 trillion is allocated for the health sector, Rp550 trillion for the education sector, Rp417.4 trillion for infrastructure, Rp408.8 trillion for social protection, Rp99 trillion for food security, Rp26 trillion for the development of information and technology, and so on.
Amidst the economic slowdown due to the pandemic, as previously stated by Minister of Finance, the Government’s expenditure is the main driver of Indonesia’s economy. Thereby, the 2021 State Budget must be used immediately to stimulate the economy. For that reason, I instruct all ministers, heads of ministries and institutions, regional heads, particularly those with a big budget, including Ministry of Education and Culture, Ministry of Public Works and Public Housing, Ministry of Transportation, Ministry of Agriculture, and other ministries with a big budget, as well as regional governments, to conduct an early auction in December to stimulate the economy in the first quarter of 2021. That means, in January, there will be an economic movement since the auction will start once the Budget Implementation List (DIPA) is handed over.
Regarding the social assistance program, Minister of Social Affairs, in January 2021, the assistance must be disbursed to the beneficiaries in order to increase public spending and consumption as well as to stimulate the grassroots economy. We must work swiftly since we are in a state of crisis. We must have a different spirit, different from normal conditions. All of us, as I have said many times, must switch channel to ‘extraordinary’ so that the stimulus program can bring concrete impacts and leverage to the economic growth.
On this occasion, I order all Ministers, Heads of Institutions, and Regional Leaders to reform the budget in order to stimulate national and regional economy. Use the State Budget and Regional Budget carefully, effectively, well-targeted. Every Rupiah in the State Budget and Regional Budget must be spent for the benefit of the people. Flexibility aspect is also important in budget realization amidst the uncertainty. Our main task is to resolve problems of the grassroots, problems of the people, and to help people. And once again, vigilance, transparency, and accountability are an integral part of the realization of the State Budget and the Regional Budget.
I think that is all I can say in this good opportunity. I emphasize that the pandemic has not ended yet but we will take a step forward to recover through vaccination, which inshaallah, the vaccine will arrive at the end of November or early December 2020. We will not inject the vaccine immediately, we will not rush the vaccination. We still wait for scientific principles and scientific data to be completed in order to receive Emergency Use Authorization from the Food and Drug Monitoring Agency (BPOM). We expect, inshaallah, the vaccination to be carried out at the end of 2020 or in January 2021.
We have conducted simulations in several areas, but it will not be easy since the distribution of the vaccine to 34 provinces and 514 districts and cities requires a lot of facilities and infrastructure, including cold chains and cold storage, because the vaccine must be stored at a certain temperature so the trip to 514 districts/cities and 34 provinces must exercise caution. We hope after the vaccination, the recovery of heatlh and sense of security in the community will stimulate economic activities, and we also hope it can create many job opportunities.
I think that is all I can say on this auspicious occasion. And by saying bismillahirrahmanirrahiim, today I will hand over the Budget Implementation List (DIPA) and List of Budget Allocation for Regional Governments and Village Funds for 2021 Fiscal Year. Please receive the DIPA, it is on the table beside all of you.
Thank you.
That conclude my remarks.
Wassalamu’alaikum warahmatullahi wabarakatuh.
Translated by Syarifah Aisyah
Reviewed by Mia Medyana B