PEN budget realization reaches 29.9% of Rp699-trillion budget ceiling

PEN budget realization reaches 29.9% of Rp699-trillion budget ceiling

Coordinating Minister for Economic Affairs Airlangga Hartarto. (ANTARA/HO- Coordinating Ministry for Economic Affairs)

Jakarta (ANTARA) - Coordinating Economic Affairs Minister Airlangga Hartarto emphasized that budget realization under the National Economic Recovery (PEN) program had, until now, reached 29.9 percent of the total budget ceiling of Rp699.4 trillion.

During a virtual press conference at the Presidential Palace, Jakarta, Monday, Hartarto revealed that disbursement of the PEN budget rose by Rp86.7 trillion, from the realization in the first quarter (January-March) 2021 that amounted to Rp123 trillion, or the current total of Rp209 trillion.

"Implementation of the PEN program had reached 29.9 percent of the ceiling, an increase of Rp86.7 trillion, from realization in the first quarter during which it had reached Rp123.2 trillion," the minister stated.

Increase in the realization of the PEN budget is apparent from the absorption of the social protection sector budget that had reached 39.2 percent of the sector's ceiling of Rp150.2 trillion.

Realization of the PEN health sector budget reached 18.8 percent of the Rp175.2-trillion ceiling, while realization of the PEN priority program had touched 28 percent of the Rp123.6-trillion ceiling.

Furthermore, Hartarto noted that realization of the MSME and Corporate support sector budget reached 21 percent of the total ceiling of Rp193.5 trillion and the realization of incentives for business was clocked at 79.9 percent of the ceiling of Rp56.7 trillion.

President Joko Widodo (Jokowi) had earlier warned that the PEN budget of Rp699 trillion must be realized quickly and also be on target.

"This is because we have to catch up and hit the target, so that our economy can bounce back," President Joko Widodo (Jokowi) had remarked last week, Thursday (May 27).

President Jokowi noted that the realization of PEN spending had, so far, been slow.

“Budget absorption for PEN, the National Economic Recovery Program, remains slow at 24.6 percent. Once more, the acceleration and also the accuracy of target (are urgently needed),” he stressed.

The president underscored that 2021 was the year of national economic recovery to which end budget realization should be expedited without overlooking accuracy, effectiveness, and efficiency in budget utilization.

Moreover, Jokowi urged the Development Finance Comptroller (BPKP) and the Government Internal Supervisory Agency (APIP) to meet the economic growth target at seven percent by the second quarter of 2021 after having plummeted to negative levels in the earlier four quarters.
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