Thursday, 13 Augst 2020 | 15:55 WIB

Social Affairs Ministry Encourages Economic Growth through High Budget Spending

Social Affairs Ministry Encourages Economic Growth through High Budget Spending (kemensos)

JAKARTA, NETRALNEWS.COM - The Indonesia Ministry of Social Affairs has recorded an impressive budget realization. As of Thursday (07/09/2020), the Ministry's budget spending has reached IDR66.04 trillion, or at 63.23 percent of the budget cap of IDR104.45 trillion for the current fiscal year.

Following the direction of President Joko Widodo, the Ministry of Social Affairs budget realization covers all types of spending. Among them, goods expenditures amounted to 38.85%, capital expenditures 37.88%, Authority of the Central Office amounted to 63.53%, Social Expenditures 64.23%, and other expenditures.

With the actual budget spending of 63.23 percent, the Ministry of Social Affairs' budget spending is the highest among other government ministries and institutions. The budget spending is also far higher than the average realization of the national budget of 39%.

"In accordance with the direction of the President, the acceleration of the realization of government spending is the key to the movement of the economic wheel in the midst of a slowing pandemic. Therefore, I always encourage the Ministry of Social Affairs to continue to accelerate spending in every work unit," said Minister of Social Affairs Juliari P Batubara in Jakarta, on Thursday (07/09/2020).

The various types of spending include social assistance expenditure (bansos), which is the most effective way to increase people's purchasing power.

"Because of the cash assistance, for example, the funds are directly received by the Beneficiary Families (KPM). Then they immediately spend at the nearest warung. This is what turns the local economy and in turn the national economy," he said.

Social Aid allocation in the Ministry of Social Affairs 2020 budget cap is IDR100.21 trillion, with the realization as of yesterday reaching IDR64.36 trillion or 64.23%.

On various occasions, the Minister of Social Affairs often stated that social assistance during the Covid-19 pandemic, such as cash assistance (BST), had a direct effect in driving the economy. As when reviewing the distribution of BST in Sukabumi Regency, yesterday, the Minister of Social Affairs stated similar things.

"Currently, economic conditions are down. BST can move the community's economy and cover basic family needs that cannot be met because of the impact of the Covid-19 pandemic, "he said.

To ensure the acceleration of the distribution of Social Aid and the accuracy of the target, within a week, the Minister of Social Affairs can go to the field 3-4 times in various cities.

Earlier in a limited meeting Tuesday, July 7, 2020, at the State Palace, Jakarta, the President asked his staff to accelerate government spending to drive the economy. The third quarter of this year will be key to efforts to restore the national economy amid a pandemic.

"The key is in the third quarter. Once the third quarter can be brought up to plus (economic growth), yes the fourth quarter will be easier, next year, God willing, it will also be easier," he said.

According to him, government spending is the main driver for the economy amid the current pandemic. The Head of State once again reminded his staff to be able to work extraordinary beyond what had been done before. According to him, a number of things must continue to be improved and improved for the needs of the wider community.