Indonesia to stop economic recovery budget from 2022-end

Jakarta, Aug 12 (ANTARA) - The government is preparing to stop allocating the budget for COVID-19 handling and national economic recovery (PC-PEN) from the end of this year, Coordinating Minister for Economic Affairs Airlangga Hartarto has informed. "So, the PEN fund will stop at the end of this year akin to the law concerning a change in the budget deficit," he said here on Thursday. Based on Law No. 2 of 2020 concerning State Finance and Financial System Stability for COVID-19 Handling Efforts, the state budget (APBN) deficit has been allowed to exceed 3 percent of the national gross domestic product (GDP) for three years till 2022, he noted. The government will not allocate a budget for COVID-19 handling and national economic recovery, but this does not mean that it will not continue its programs in the health and social protection sectors, the minister clarified. "The fund will entirely be returned to each sector, including the health sector at the Health Ministry and the economic sector at respective ministries and institutions," he said. Earlier, Finance Minister Sri Mulyani Indrawati had said that the budget allocation for COVID-19 handling and national economic recovery had reached Rp146.7 trillion, or 32.2 percent of the ceiling of Rp455.62 trillion, as of July 22, 2022. The budget allocation comprised Rp63.7 trillion, or 41.1 percent of the ceiling of Rp154.67 trillion, for social protection and Rp31.8 trillion, or 25.9 percent of the ceiling of Rp122.54 trillion, for the health sector.