Sri Mulyani Called Economic Recovery Can ‘New Enemy’.

Jakarta, IDN Times – Finance Minister Sri Mulyani Indrawati said the fiscal stimulus policy for handling COVID-19 and the National Economic Recovery (PEN) program were facing a “new enemy”. This problem occurs at the operational and administrative processes.

“This condition occurs considering that this stimulus is just the beginning and improvements will be made to accelerate,” Sri Mulyani said in a webinar in Jakarta, Saturday (6/27) quoted from Among.

1. As a result, absorption of spending has not been maximized

Program for small community empowerment. IDN Times / Daruwaskita

Sri Mulyani said the challenge made absorption of fiscal stimulus spending still slow and not optimal until near the end of June 2020.

For health programs worth Rp87.55 trillion, for example. The absorption is only 4.68 percent or around Rp4.04 trillion. This happens because there is still a gap between financial and physical realization.

The low absorption of spending also occurred for sectoral and regional government programs valued at Rp.106.1 trillion, the realization of which reached 4.01 percent or around Rp4.25 trillion, because it requires general government support in the regulatory settlement process.

“But related to the labor-intensive program by the ministry of ministry has begun to be implemented,” said Sri Mulyani.

Also Read: Tok! DPR Forms Monitoring Team for Economic Recovery and Law Enforcement

2. Payment of medical personnel is hampered

Sri Mulyani Called Economic Recovery Can 'New Enemy' BETWEEN PHOTOS / Ahmad Subaidi

The next impact of this low absorption of spending is that constrained payment of incentives for health workers and the cost of patient care claims are still constrained by rigid administration and verification.

“The slowdown occurred mainly due to delays in the billing process, the verification process of care costs by BPJS Health and the budget revision process,” Sri Mulyani said.

Continue reading the article below

Editor’s picks

3. Some sectors with absorption of spending above 10 percent

Sri Mulyani Called Economic Recovery Can 'New Enemy' Illustration of Pre-Work Cards (IDN Times / Arief Rahmat)

There are several sectors where absorption of expenditure is above 10 percent. First, for social protection worth IDR 203.9 trillion, the realization reached 34.06 percent or around IDR 69.48 trillion. This happens because the implementation of the Village Work Card and BLT has not been effective.

However, the implementation of social assistance programs such as groceries, PKH as well as cash assistance and electricity tariff discounts have been going well.

Second, for the UMKM program worth Rp123.46 trillion, the realization reached 22.74 percent or Rp28 trillion, which has been used for KUR and non-KUR interest subsidies and fund placements at Himbara banks. For corporate financing worth Rp53.57 trillion, this incentive has not even been absorbed at all, because it still requires the completion of a support and regulatory scheme and supporting infrastructure for operationalization.

Finally, business incentives worth Rp120.6 trillion, absorption of 10.14 percent or around Rp12.1 trillion, because there are still business operators who receive incentives that have not fully utilized this facility.

“Taxpayers who eligible “to take advantage of tax incentives do not submit applications, so we need more massive outreach and involve relevant stakeholders,” he said.

Also Read: PEN Swollen Budget Becomes IDR677.2 T for Handling Corona Virus

4. Ministry of Finance improvement strategy

Sri Mulyani Called Economic Recovery Can 'New Enemy' Minister of Finance Sri Mulyani (IDN Times / Shemi)

Sri Mulyani ensured the government would make a number of efforts to overcome the problems of regulation, administration and implementation in the slow field.

These efforts include identifying the obstacles to execution and formulating an accelerated execution strategy specifically for health management, support for MSMEs and business incentives.

The government will also accelerate the completion of regulations and simplify administrative procedures and encourage the effectiveness of public communication so that this policy can be optimized.

Also Read: SOE Ministry Denies There Is Politics Behind Stimulus PEN Rp. 153.4 T

Leave a Comment