Indonesia announces end of pandemic handling fund

Coordinating Minister for Economic Affairs Airlangga Hartarto (Photo: republika.co.id)

Jakarta (VNA) – Indonesia’s Coordinating Ministerfor Economic Affairs Airlangga Hartarto announced on August 11 that thegovernment is preparing to stop allocating the budget for COVID-19 handling andnational economic recovery (PC-PEN) from the end of this year.

According to him, based on Law No. 2 of 2020 concerningState Finance and Financial System Stability for COVID-19 Handling Efforts, thestate budget deficit has been allowed to exceed 3 percent of the national grossdomestic product (GDP) for three years till 2022

The government will not allocate a budget for COVID-19handling and national economic recovery, but this does not mean that it willnot continue its programmes in the health and social protection sectors, theminister clarified, adding that the fund will entirely be returned to eachsector like before the COVID-19 broke out.

Earlier, Finance Minister Sri Mulyani Indrawati said thatthe budget allocation for COVID-19 handling and national economic recovery hadreached 146.7 trillion Rp (9.99 billion USD), or 32.2 percent of the ceiling of455.62 trillion Rp, as of July 22, 2022.

The budget allocation comprised 63.7 trillion Rp for socialprotection and 31.8 trillion Rp for the health sector./.

VNA