Emergency PPKM Extended, Healthcare Budget Increased to Rp 214 Trillion

The Indonesian government has reallocated funds from the 2021 State Budget (APBN) to support the extended Emergency Community Activity Restrictions (PPKM Darurat) until the end of July. This includes an increase of Rp 21.02 trillion in the health budget.

The initial budget allocation was Rp 193.93 trillion, increasing to Rp 214.95 trillion. These funds will be used for healthcare programs, including patient care claims, provision of Covid-19 medication, incentives and compensation for healthcare workers, and the construction of emergency hospitals. The budget increase also covers accelerated vaccination, strengthening micro-scale PPKM in regions, emergency oxygen supplies, tax incentives, and other healthcare initiatives.

In addition to healthcare programs, the government also increased the social protection budget from Rp 153.86 trillion to Rp 187.84 trillion. The budget for priority programs increased by 7.6%, from Rp 117.04 trillion to Rp 117.94 trillion.

Conversely, the budget for UMKM (Micro, Small, and Medium Enterprises) and corporate support programs decreased from Rp 171.77 trillion to Rp 161.20 trillion. The budget for business incentives remained unchanged at Rp 62.83 trillion.

Overall, the reallocation of the budget for handling the corona virus and the National Economic Recovery (PEN) program increased by 6.4%, from a total of Rp 699.43 trillion to Rp 744.75 trillion. Finance Minister Sri Mulyani stated that institutions will review and scrutinize budgets across ministries, agencies, and regions to prioritize funds for Covid-19 handling and supporting the recovery of the business world.