PEN allocation projected to reach Rp553.09 trillion in 2021: Hartarto

PEN allocation projected to reach Rp553.09 trillion in 2021: Hartarto

Coordinating Minister for Economic Affairs Airlangga Hartarto. ANTARA/Astrid Faidlatul Habibah

This means the government has seen that economic recovery in 2021 requires similar support as that in 2020
Jakarta (ANTARA) - Projected budget allocation for the national economic recovery program (PEN) this year will reach Rp553.09 trillion, or close to the realization of Rp579.78 trillion in 2020, Coordinating Economic Affairs Minister Airlangga Hartarto stated.

"During the last cabinet meeting, plenary session, and at our meetings, the Ministry of Finance has collected data and figures related to allocation for economic recovery in 2021, the amount for which reached Rp553 trillion," he remarked while speaking at a discussion on economic recovery here on Tuesday.

The government has raised the PEN budget allocation, from earlier Rp403.9 trillion, to demonstrate its commitment and support for economic recovery and adeptly handling the COVID-19 pandemic.

"This means the government has seen that economic recovery in 2021 requires similar support as that in 2020," he stated.

Hartarto noted that until Indonesians achieve herd immunity through vaccinations conducted until next year, the government is necessitated to support six fields -- health, social protection, priority programs, MSMEs, and corporate financing, and business incentives -- that have been the focus of the 2021 PEN budget.

Some Rp104.7 trillion is apportioned for the health sector for procurement and operations pertaining to the COVID-19 vaccine, facilities, infrastructure, and medical devices; treatment claim costs; incentives for health workers and death benefits; as well as BPJS (health insurance) subsidies.

Some Rp150.96 trillion has been allotted for the social protection sector; Rp141.36 trillion for priority programs focused on supporting tourism, food security, labor-intensive ministries, industrial estates, among others; and Rp156.06 trillion for MSMEs and corporate financing.

Meanwhile, the realization of funds for last year's PEN budget had reached Rp579.78 trillion, or 83.4 percent of the ceiling of Rp695.2 trillion.

The realization included Rp63.51 trillion for the health field from a ceiling of Rp99.5 trillion and Rp220.39 trillion for social protection from a ceiling of Rp230.21 trillion.

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