With Emergency PPKM in place, the Government Increases the Budget for Healthcare and Social Protection

The Indonesian government reallocated the 2021 State Budget (APBN) to support the implementation of the Emergency Community Activity Restrictions (PPKM Darurat) from July 3rd to 20th. One of the measures involved increasing the health budget.

An additional Rp 13.1 trillion was allocated to the health program. The initial budget allocation was Rp 172.84 trillion, increasing to Rp 185.98 trillion.

This health program includes vaccination, testing and tracing activities, treatment, and incentives and benefits for healthcare workers. The budget increase also covers health tax incentives, infrastructure, and medical equipment.

“In handling and anticipating this Emergency PPKM, the 2021 APBN remains flexible and provides full support,” said Finance Minister Sri Mulyani Indrawati in a press conference broadcast live on the Ministry of Finance's YouTube account on Friday, July 2nd, 2021.

Besides the health program, the government also increased the budget for business incentive programs from Rp 56.73 trillion to Rp 62.83 trillion. Social protection funding increased by 0.54%, from Rp 148.27 trillion to Rp 149.08 trillion.

Meanwhile, the budget for UMKM and corporate support programs decreased from Rp 193.74 trillion to Rp 178.47 trillion. Similarly, the budget for priority programs decreased from Rp 127.85 trillion to Rp 123.08 trillion.

The reallocation of the corona and PEN (National Economic Recovery) budget was carried out in conjunction with the implementation of the emergency PPKM. This policy was planned to be implemented in 122 regencies/cities in Java and Bali from June 3rd to 20th, 2021.