JAKARTA - The realisation of the funds budgeted for the handling of the coronavirus (COVID-19) pandemic and the National Economic Programme as of the first week of August reached Rp 151.25 trillion, 21.8% of the total budget of Rp 695.20 trillion.
The realisation encompassed five sectors, namely health (Rp 7.1 trillion), social protection (Rp 86.5 trillion), ministries/government agencies and local governments (Rp 8.6 trillion), MSME support (Rp 32.5 trillion), and business incentives (Rp 16.6 trillion), while there has been no realisation for corporate financing.
"The budget absorption has started to show improvement, and we have decided to extend all programmes, especially those related to social assistance, until December," said Finance Minister Sri Mulyani Indrawati in a virtual media briefing on Monday (10/8).
According to Ms Indrawati, the government is prepared to design the programme should any obstacle arise in order to ensure that economic recovery can run smoothly.
"Obviously we need to speed up and simplify the bureaucratic process," she said.
Through the programme, the Ministry of Finance focuses on setting priorities and minimising obstacles, especially those related to regulation and governance.
"We ask that all ministries and government agencies prepare to carry out [spending] so that higher government spending can encourage economic recovery," Ms Indrawati said. (MS)