Optimal social protection budget realization revs up economic recovery

Optimal social protection budget realization revs up economic recovery

Illustration - The Pre-Employment Card. ANTARA/HO

This (economic recovery) I think could not be separated from realization of the PEN budget, especially the high expenditure in social protection
Jakarta (ANTARA) - Maximum budget realization for the National Economic Recovery (PEN) Program, especially pertaining to social protection, will boost economic growth in the third quarter of 2020, an economist Yusuf Rendy Manilet stated.

"This (economic recovery) I think could not be separated from realization of the PEN budget, especially the high expenditure in social protection," Manilet, an economist of economic think tank, the Center of Reform on Economics (CORE) Indonesia, told ANTARA here on Tuesday.

Various income groups have enjoyed the social aid that enabled to boost economic recovery, he noted.

Manilet stated that the government had allocated assistance for the low-income community through its Family Hope Program (PKH), while for the middle-income group, it had disbursed the aid through the Cash Transfer (BLT) Program.

The social assistance was additionally provided for laid-off workers and those yet to get a job through the issuance of Pre-Employment Cards.

Manilet opined that realization of the social protection program had boosted public consumption in the third quarter, which furthermore implicated an economic recovery, albeit at a sluggish pace.

This was indicated by the growth in Real Sales Index in August that had reached minus nine percent.

However, Manilet called for evaluating the implementation of the social protection program after several eligible beneficiaries were unable to enjoy the financial aid owing to various problems.

Manilet projected that the country's economic growth in the third quarter of the year will veer to a better direction as compared to the second quarter, albeit still recording a negative growth.

As of October 14, realization of the national economic recovery budget for social protection had amounted to Rp167.08 trillion, of the total budgeted Rp203.9 trillion.
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