2020 State Budget is Focused on Handling Covid-19

JAKARTA. The government will change the focus on the use of the 2020 State Budget (Anggaran Pendapatan dan Belanja Negara/ APBN) to deal with the outbreak of Coronavirus Disease 2019 (Covid-19).  Previously, the 2020 APBN was prepared with the aim of increasing the acceleration of competitiveness through innovation and strengthening the quality of human resources. 

In this regard, President Joko Widodo (Jokowi) issued the presidential Instruction (Instruksi Presiden/Inpres) Number 4 of 2020. The Inpres is addressed to all ministries/institutions (Kementerian/Lembaga/K/L), including the entire regional head of both the Governors and the Regents/Mayors throughout Indonesia.

In this Inpres, the President asked the Minister of Finance to revise the budget quickly, simply and accountably.  While relating to the Regional Budget (Anggaran Pendapatan dan Belanja Daerah/APBD), it becomes the authority of the Minister of Home Affairs.

The President also urged the Ministry of Health to accelerate the registration of medical devices and medical devices to handle Covid-10.

Specifically, there are five important instructions conveyed in this regulation.  First, the budget allocation in the 2020 APBN will prioritize activities that accelerate the handling of Covid-19. These activities refer to applicable protocols and operational plans for acceleration of handling established by the Covid-19 Handling Acceleration Task Force.

Second, accelerating the re-focusing of activities and budget reallocation through a budget revision mechanism.  Third, expedite the implementation of procurement of goods and services, to accelerate the handling of Covid-19.

Fourth, in conducting procurement, it must involve the National Public Procurement Agency (Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah)and Indonesia's National Government Internal Auditor (Badan Pengawasan Keuangan dan Pembangunan/BPKP). Fifth, in procuring goods and services, should attention to the standards set by the Ministry of Health.

Central Government Expenditure	APBN 2020 (IDR Trillion)	Realization as of February
K/L Expenditure	909,62	83,88
- Personnel Expenditure	261,22	29,43
- Goods Expenditure	335,87	16,08
- Capital Expenditure	209,54	6,47
- Social Expenditure	102.99	31,91
Non K/L Expenditure	773,86	77,85
- Subsidy	187,61	10,96
- Personnel Expenditure	154,98	32,30
- Interest Payment	295,21	34,29
Total	1.683,48	161,73

K/L : Kementrian/Lembaga (Ministries/Institutions)

Source : Ministry of Finance

Previously, as quoted from CNNIndonesia.com, Minister of Finance Sri Mulyani said that she would reallocate a budget of IDR 62.3 trillion to handle Covid-19. The budget allocations to be transferred include, official travel budgets, non-operational expenditure, honorarium, blocked funds, and reserve output.