Govt allocates Rp356.5 trillion to support national economic recovery

Govt allocates Rp356.5 trillion to support national economic recovery

President Joko Widodo prepares to deliver an introductory speech for the 2021 Draft State Budget and Financial Note at the DPR-RI Plenary Meeting for the 2020-2021 session, at the MPR/DPR building in Jakarta on Friday (August 14, 2020). (Antara Foto / Akbar Nugroho Gumay / pras)

Sixth, business incentives are (pegged) around Rp20.4 trillion, (which will be provided) through taxes borne by the government, exemption from income tax (PPh), Article 22 on imports, and preliminary VAT refunds
Jakarta (ANTARA) - The Indonesian government has allocated Rp356.5 trillion in the 2021 draft state budget (RAPBN) to support the national economic recovery agenda, which ranges from supporting the health sector, provision of social protection programs, to business incentives.

“In line with the importance of the continuation of National Economic Recovery, in the 2021 Draft State Budget, a budget of around Rp356.5 trillion has been allocated, which will be directed at, first, health management with a budget of around Rp25.4 trillion for the procurement of vaccines, health facilities and infrastructure, laboratories, R&D, as well as subsidy for members of the Health Care and Social Security Agency (BPJS Kesehatan)'s third-class non-wage recipients (PBPU),” President Joko Widodo said while presenting the 2021 Draft State Budget and Financial Note at the DPR-RI Plenary Meeting for the 2020-2021 Session Year at the MPR/DPR building in Jakarta on Friday.

For social protection for the lower middle class, the government has allocated around Rp110.2 trillion for the family hope program, provision of basic food cards, pre-employment cards, and cash social assistance.

President Widodo said a budget of around Rp136.7 trillion has been prepared for the sectoral ministries/institutions and regional governments, which is aimed at increasing tourism, food and fisheries security, industrial estates, ICT development, loans to regions, and anticipating economic recovery.

Furthermore, around Rp48.8 trillion of support has been prepared for micro, small and medium enterprises (MSMEs) through interest subsidies for microcredit (KUR), MSME financing, guarantees, and placement of funds in banks.

The government has also allocated corporate financing of around Rp14.9 trillion, which is earmarked for guarantee institutions and SOEs which perform the assignment.

“Sixth, business incentives are (pegged) around Rp20.4 trillion, (which will be provided) through taxes borne by the government, exemption from income tax (PPh), Article 22 on imports, and preliminary VAT refunds,” the head of state said. (INE)


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