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MINISTRY TRANSFER 2021 REGULAR BIP BUDGET TO COVID HANDLING PROGRAM

THE INDONESIA’S Ministry of Tourism and Creative Economy canceled the regular category of Government Incentive Assistance (BIP) program in 2021 to be transferred to the COVID-19 recovery and handling program.

This refers to the Letter of the Minister of Finance Number S-584/MK.02/2021 dated July 6, 2021 regarding Refocusing and Reallocation of Expenditures of Ministries/Institutions for FY 2021, as well as the Memorandum of Service of the Secretary of the Ministry of Tourism and Creative Economy/Primary Secretary of the Creative Economy Agency Number B/KU.00.07/975/ S/2021 concerning Refocusing and Reallocation of Expenditures for FY 2021 on July 12, 2021, and Letter Number B/KU.00.07/1001/S/2021 concerning Refocusing and Reallocation of Expenditures for FY 2021 Phase IV, where refocusing is carried out for budget savings.

According to the Deputy for Industry and Investment at the Ministry of Tourism and Creative Economy, Fadjar Hutomo, in his statement in Jakarta, Tuesday (10/5) explained that related to the refocusing for budget savings, there were adjustments that affected budget allocations related to the implementation of existing activity programs.

“So, the 2021 Regular BIP program budget is not available due to the budget refocusing carried out to help deal with COVID-19 and recover the national economy. As for the BIP for the Public Prosecutor’s Office (BIP JPU), the prospective recipients have been selected and announced, they will still be implemented, although with a reduction in the amount of assistance from Rp. 20 million per beneficiary, to IDR10 million per beneficiary,” he said.

Fadjar Hutomo expressed his gratitude and apologies to the participants who had participated and submitted their proposals to participate in the 2021 Regular Category BIP program selection. He understood that tourism and creative economy business players who participated in the Regular Category BIP program had been very enthusiastic and prepared the required documents as well as proposals submitted as a requirement for the Regular BIP selection. However, the existing conditions forced a decision to refocus the budget.

“We took this responsive step with full consideration, to be able to prioritize the existing and remaining budget so that it is focused in this case focused on the implementation of the disbursement of aid for the Public Prosecutor’s BIP Category. One of these tough decisions was taken so that the COVID-19 pandemic can be resolved immediately and the recovery process will start immediately,” Fadjar remarked.

As is known, the Regular Category Government Incentive Assistance is an assistance program for additional working capital and/or fixed asset investment in order to increase the business/production capacity of tourism and creative economy business actors by a maximum of IDR200 million, the registration process opens on June 4 and closes on July 7 2021.

The Government Incentive Assistance Program (BIP) is divided into 2 categories, namely the Regular BIP and the Business Safety Net BIP (BIP JPU). Regular BIP is opened for business entities that are involved in 6 (six) creative economy sub-sectors, namely applications, game developers, crafts, fashion, culinary, and films. As well as the tourism business sector in accordance with Law number 10 of 2009 concerning tourism.

Meanwhile, the Public Prosecutor’s Office was opened for businesses in the Culinary, Craft, and Fashion sectors. The main requirements for registering include having an NIB or Business Permit Number, while the terms and conditions for each BIP category can be seen in the Technical Instructions which can be downloaded on the BIP website.

To obtain this assistance, there are several stages of selection that must be passed by all participants, namely administrative selection, proposal substance selection, interview selection, and field verification. Then after that there are stages of determining beneficiaries, binding commitments to cooperation agreements, disbursing aid, reporting and accountability, as well as monitoring, controlling and evaluating.

Although the Regular Category BIP program cannot be run this year, the Minister of Tourism and Creative Economy, Sandiaga uno, said that the Tourism Ministry will continue to try to help tourism and creative economy entrepreneurs. Especially in the midst of the current COVID-19 pandemic situation, through other programs that will be optimized to help tourism businesses and the creative economy.

“Therefore, I invite tourism and creative economy business actors, especially Regular BIP participants who have previously participated in the selection process from all over Indonesia to stay positive, enthusiastic, and optimistic, we encourage them to take advantage of various stimulus programs for the business world that have been prepared by the government,” Fadjar concluded. [traveltext.id]