Jakarta (ANTARA) - The government has strived to balance out the impacts of the Community Activity Restrictions (PPKM) implementation through realization of the National Economic Recovery (PEN) program budget, Coordinating Minister for Economic Affairs Airlangga Hartarto stated.
The government decided to implement Emergency PPKM in Java-Bali and in 15 cities and districts outside the two islands as well as tightened Micro PPKM in other areas to stem the rising number of COVID-19 cases.
"Emergency PPKM and Micro PPKM tightening have pushed down the consumption sector. The government has attempted to compensate that by optimizing the state budget (APBN) spending, one of them through the PEN program, so that consumption will continue to increase," Hartarto remarked during the opening of the online Investor Daily Summit 2021 in Jakarta on Tuesday.
Hartarto noted that the realization of PEN budget had reached Rp252.3 trillion, or 36.1 percent of the Rp699.43 trillion allocated for this program. The government has also reallocated the PEN funding to the health sector, which remains a priority sector, with a Rp193.93-trillion grant.
The government has additionally provided Rp171.77 trillion worth of APBN support for micro, small, and medium enterprises (MSME) and corporations as well as Rp153.86 trillion for the social protection cluster.
"Social protection programs are implemented to minimize the impact (of PPKM) on the nation's economy in the form of social cash grant extension and 10 kg of additional rice aid for 20 million people," Hartarto stated.
The government has also continued the electricity discount program for 450-900 VA households as well as increasing the number of village fund cash transfers (BLT) recipients.
In addition, the government has transferred the productive aid fund for micro-enterprises to 9.8 million micro-entrepreneurs as of June, with an additional Rp3.6 trillion for three million new recipients during the period from July to September.
The government also continued to provide incentives to business sectors still seeking support, such as extending the motor vehicle Sales Luxury Tax (PPNBM) incentive until August 2021 and facilitating ease of doing business through the Job Creation Law.
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