THE 2020 State Budget and Expenditure will be focused on addressing and mitigating the impact of the spread of Covid-19 in Indonesia.

Minister of Finance Sri Mulyani ensured that the budget allocation would shift in the spending of Ministries/Institutions (M/I) in an effort to provide fiscal space for funding to handle the corona virus or Covid-19.

“The Covid-19 issue is very important and priority is to be addressed and the State Budget will support it. The aim of refocusing activities and state expenditures is so that the handling of Covid-19 is not hindered just because of budget problems,” Sri Mulyani said.

Sri Mulyani has also issued Circular Minister of Finance Number 6 Year 2020 concerning Refocusing Activities and Budget Reallocation of Ministries/Institutions in the Framework of Accelerating Handling of Covid-19. This letter serves as a guideline for Ministries / Institutions to quickly adjust budget allocations and prioritize the handling of Covid-19.

As for some Ministry/Institutions activities that can be reallocated, first, activities that are generally lacking priority, activities whose funds are still blocked, activities that have remaining tenders, or activities that are canceled.

Some types of expenditure that are not urgent and recommended to be reduced are domestic and foreign official travel expenditure, meetings, meetings, seminars and the like with a large number of participants, as well as organizing events and promotions at home and abroad.

“Because many Ministries/Institutions may not be able to carry out their activities such as business trips, meetings, and so on so that they can reallocate their budgets for priority matters related to Covid-19,” Sri Mulyani continued.

In terms of capital expenditure, too, activities that are not prioritized or have not yet been bound can be reallocated by the budget. These are activities or projects that are still blocked or recorded because they are waiting for the approval of related parties, or those that are still in the tender process, as well as projects that have the remainder of the auction.

With the reallocation of the budget for a number of activities and projects of the Ministry/Institution, the Ministry of Finance estimates the value of the budget reallocation can range from IDR5 trillion to IDR10 trillion. In order to quickly reallocate the Ministry/Agency expenditure process, the Ministry of Finance has also accelerated the revision time from the original five days to only two days and was done online.

“So this all provides the ability for Ministries / Institutions to prioritize the handling of Covid-19. We will continue to accelerate so that ministries and institutions can immediately make a revision,” Sri Mulyani concluded. [ special]