On the basis of calculation from the revision package of Presidential Decree No. 54 of 2020 that we delivered with a deficit of 6.4 percent, the stimulus offered to Indonesia is then equal to 4.2 percent of the GDPJakarta (ANTARA) - Costs borne by Indonesia’s government to handle the COVID-19 pandemic and subsequent impact, through the economic stimulus program, reach Rp695.2 trillion, or 4.2 percent of the gross domestic Product (GDP), Finance Minister Sri Mulyani stated.
"On the basis of calculation from the revision package of Presidential Decree No. 54 of 2020 that we delivered with a deficit of 6.4 percent, the stimulus offered to Indonesia is then equal to 4.2 percent of the GDP," the minister remarked during a work meeting with the House of Representatives' Commission X. here on Monday.
Indonesia's COVID-19 handling budget totals Rp695.2 trillion, comprising Rp87.55 trillion in the health sector, Rp203.9 trillion for social protection, Rp120.61 trillion for business incentives, Rp123.46 trillion for micro, small, and medium enterprises (MSME), Rp53.57 trillion for corporate funding, and Rp106.11 trillion for ministry and governmental bodies sectors and local governments.
The government-issued stimulus aimed at salvaging the economy from further weakening, thereby prompting the issuance of policies from both the monetary and fiscal sectors.
Mulyani noted that Indonesia is not the only country to have issued stimulus policies for economic recovery, but other G-20 countries, including Germany, Japan, Italy, Great Britain, the United States, Australia, France, Canada, and Russia, too have issued similar policies.
"With such significant contraction, other countries are all applying stimulus programs to help salvage their economies," she added.
Furthermore, Mulyani stated that the government will constantly monitor developments pertaining to the COVID-19 pandemic in the country, based on the number of cases that continue to rise daily, particularly in cities contributing larger to the economy.
"We need to step up vigil, as the number of cases continue to rise, along with the government's efforts to conduct rapid tests on a larger scale," she stated.
The minister noted that six areas have recorded the highest number of confirmed cases. These comprise DKI Jakarta that contributes 18 percent of the GDP; East Java, 14.9 percent to the GDP; West Java, 13.4 percent; Central Java, 8.6 percent; South Sulawesi, 3.2 percent; and South Kalimantan, 1.1 percent.
"COVID-19 not only impacts people but also the economy, as areas, with the highest number of confirmed cases, are also the largest contributors to Indonesia's economy," she pointed out.
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Translator: Astrid Faidlatul Habibah/Aria
Editor: Fardah Assegaf
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