Covid-19 Fiscal Stimulus Realization Still Below 50 Percent
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Due to the COVID-19 pandemic, the Indonesian government provided fiscal stimulus to revive the sluggish economy and social life. The allocation amounted to Rp695.2 trillion. The Ministry of Finance allocated this to alleviate the severe pressure in the second quarter of 2020. However, the realization has not yet reached 50 percent (as of August 19, 2020).
The sector with the highest realization is social protection, reaching 45.71 percent. The allocated budget was Rp203.9 trillion, with a realization of Rp93.2 trillion. Meanwhile, the corporate financing budget remains completely unabsorbed, with an allocated budget of Rp53.57 trillion.
Considering the fiscal stimulus and its realization, the Institute for Economic and Community Research, University of Indonesia (LPEM UI), believes the government needs to focus on four key sectors and agendas: micro, small, and medium enterprises (MSMEs); green and sustainable programs; tightening credit requirements for environmentally risky sectors; and reallocating government spending to priority sectors.
"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."
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