"The national economic recovery program, with a total budget of Rp695.2 trillion, has been implemented as of December 2, 2020, at 63.3 percent, or Rp440 trillion," she said at an online discussion in Jakarta on Friday.
With the PEN budget of Rp695.2 trillion, the government is committed to taking steps to reduce the adverse impact of COVID-19, which has affected both society and economy, she added.
The PEN budget is focused on several sectors, including health (Rp97.26 trillion), social protection (Rp234.33 trillion), ministries/ institutions and local governments (Rp65.97 trillion), MSMEs (Rp114.81 trillion), corporate financing (Rp62.22 trillion), and business incentives (Rp120.6 trillion), she noted.
According to Sri Mulyani, surveys have shown that the social protection program has been very beneficial for the community and the target has been wider, but data still needs to be improved.
Sri Mulyani said the various PEN programs are expected to encourage economic recovery and bring it closer to zero percent from the contraction of 3.49 percent in the third quarter.
If economic growth in the fourth quarter of this year approaches zero percent, there would be potential for improvement so the economy can enter the positive zone next year, she pointed out.
"The contraction is now around 3 percent, and we hope that in the fourth quarter, it will get closer to zero so that in 2021, our economy will enter the positive zone, or rebound quite strongly," she explained.
She assured the government would continue various economic recovery programs until 2021, including through the allocation of Rp550 trillion for education, Rp196 trillion for health, Rp400 trillion for social assistance, and Rp430 trillion for infrastructure.
She said she hopes that with the help of vaccines and health protocols, COVID-19 spread can be brought under control so that economic and social activities can begin to be normalized.
“That means the economy is starting to recover. The government’s steps will be able to run (and bear fruit) if there is collaboration with the business sector and the community because this situation is very unusual,” she said. (INE)
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EDITED BY INE