President Joko "Jokowi" Widodo has instructed his ministers to ensure that the government's 2021 social aid budget is spent "as soon as possible" to stimulate domestic consumption during the global health crisis, Finance Minister Sri Mulyani Indrawati said on Tuesday.

The minister said the Finance Ministry had received budget execution lists (DIPA) so that the government could begin social aid spending in January 2021. "As uncertainty remains high, we are asking government ministries to be more flexible and focus on social aid programs that are beneficial to the people." She told reporters.

Next year's state budget will be used for pandemic control efforts, vaccines, social aid and to fund regional administrations, Sri Mulyani said. The government has budgeted Rp 2.75 quadrillion (US$185.19 billion) to nurse the virus-battered economy next year, as the country endures its first recession since the 1998 Asian financial crisis.

It expects the economy to contract by between 0.6 and 1.7 percent this year, before rebounding to 5 percent growth next year, according to predictions in the 2021 State Budget Law.

"We are hoping for a strong recovery to provide job opportunities for people who are adversely affected by the pandemic in a bid to reduce unemployment and poverty," Sri Mulyani said.

Some 2.67 million Indonesians have lost their jobs during the pandemic, according to Statistics Indonesia (BPS), bringing the unemployment rate to 7.07 percent in August, the highest level since 2011. Some 1.63 million Indonesians fell into poverty in March, bringing the poverty rate to 9.78 percent, or 26.4 million people, from 9.22 percent in September 2019. More people are expected to fall into poverty this year as a result of the ongoing crisis.

Jokowi had emphasized both the State Revenue and Expenditure Budget and the Regional Revenue and Expenditure Budget must be truly oriented towards the people.

"All rupiah in the State Revenue and Expenditure Budget as well as the Regional Revenue and Expenditure Budget must be spent for the benefit of the people," said Jokowi.

Next year, the government expects to continue its development programs as it looks to raise Rp 1.74 quadrillion to fund infrastructure, health care and economic stimulus efforts, among other projects.

Source : https://nasional.kompas.com/read/2020/11/25/12520821/jokowi-minta-menteri-sosial-segera-salurkan-bansos-awal-januari-2021