The process of budget absorption should be accelerated and be comprehensive to prevent further economic contraction and not be costlyJakarta (ANTARA) - The Indonesian Chamber of Commerce and Industry (Kadin) has encouraged the government's efforts to strengthen the financial system to expedite budget realization for the National Economic Recovery (PEN) program.
"The process of budget absorption should be accelerated and be comprehensive to prevent further economic contraction and not be costly," Kadin Chairman Rosan P. Roeslani noted in a statement, here on Thursday.
Until mid-August, budget realization for the PEN Program had only reached Rp174.79 trillion, or 25.1 percent of the total budget ceiling of Rp695.2 trillion. Budget realization for the social protection program until August 19, 2020, had reached Rp93.18 trillion, equivalent to 49.7 percent of the ceiling of Rp203.91 trillion.
Roeslani pointed to continued low absorption in the five other sectors. In fact, he highlighted that in the corporate financing sector, budget absorption for corporate financing was yet zero percent.
The Kadin chairman highlighted the need for a financial strengthening system that can boost the implementation of a regulatory and supervisory system for all financial sector activities, both banking and non-bank financial institutions.
Bank Indonesia (BI) is not only tasked with safeguarding the monetary system but is also expected to conduct financial supervision to accelerate the realization of the PEN Program budget.
Roeslani also called for bolstering coordination between institutions.
Consequently, they can immediately help business actors affected by the COVID-19 pandemic and boost public consumption.
"Without reducing BI's independence, in the current crisis situation, it is very important to improve cooperation and coordination between BI and the central government as part of the efforts to facilitate recovery of the national economy," he affirmed.
Roeslani also stated that Kadin will continue to support economic policy measures issued by the government in the midst of a pandemic through the implementation of health programs and programs that can save and boost economic growth rates.
"The PEN program is already very good and strategic. However, the ways to realize its budget absorption in all sectors should be developed. The integrated financial system should be strengthened. Hence, we really hope that the central bank would conduct financial supervision, while the Financial Services Authority (OJK) continues to carry out its function of supervising the capital market," the Kadin chairman stated.
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Translator: Ade Irma, Azis Kurmala
Editor: Fardah Assegaf
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