April 2023 Social Protection Budget Realization Decreased: Why?

Social protection spending (perlinsos) from the Ministry of Finance reached Rp122.4 trillion by April 2023. This is a 5.1% decrease year-on-year (yoy) from the Rp129 trillion recorded in the same period last year.

Sri Mulyani, Minister of Finance, explained the reason for the decrease.

"Social protection spending decreased because in April 2022 there was an acceleration of payments for the Sembako card, cooking oil BLT, and village BLT," said Sri Mulyani, in a written statement during the virtual APBN KiTa press conference on Monday (23/5/2023).

Of the Rp122.4 trillion disbursed, the utilization is divided into three parts: ministry/agency (K/L) spending; non-K/L spending; and transfers to regions (TKD).

The details are as follows: K/L spending for the Ministry of Social Affairs amounted to Rp30.2 trillion. This amount was channeled through the Family Hope Program (PKH) to 9.9 million beneficiary families (KPM/poor families) and the Sembako card to 18.2 million KPM.

K/L spending for the Ministry of Education, Culture, Research, and Technology (Kemendikbudristek) and the Ministry of Religious Affairs also received funds. The realized budget from these two ministries amounted to Rp10.1 trillion for the Smart Indonesia Program (PIP) and the Smart Indonesia Card (KIP) college assistance.

Further K/L spending for the Ministry of Health amounted to Rp15.7 trillion. This was realized through assistance for National Health Insurance (JKN) Beneficiary Contribution Assistance (PBI) recipients, non-wage earners (PBPU) and class III BPJS participants, and Jampersal.

The final K/L spending was for the National Disaster Management Agency (BNPB) amounting to Rp1.3 trillion. This was channeled for housing stimulus assistance for areas affected by the Cianjur Regency disaster.

The second category, non-K/L spending, amounted to Rp62.8 trillion for energy and non-energy subsidies. The last category, TKD, amounted to Rp2.2 trillion through direct cash assistance (BLT) to villages, realized for 2 million KPM.